Markets with lead feet, after yet another negative closing on Wall Street, fueled by the flare-up of US Treasury yields.
The Dow Jones Industrial Average lost 90.22 points (-0.30%), at 30,333.59; the S&P 500 marked a decline of 0.8% to 3,665.78. The Nasdaq Composite lost 0.61% to 10,614.84.
In Asia, the Nikkei 225 index on the Tokyo stock exchange is down about 0.35%; the Shanghai stock exchange gains 0.26%; Hong Kong -0.50%, Seoul -0.25%, Sidney -0.74%. Negative US futures: futures on the Dow Jones lose 0.15%, those on the S&P 500 move back by 0.35%, those on the Nasdaq lose 0.70%.
Yesterday, 10-year Treasury rates soared to 4.22%, taking a jump of more than 20 basis points in two sessions.
Watch out for futures on fed funds expiring in May 2023 which, in the last few hours and for the first time, have jumped above the 5% threshold, confirming how traders expect the Fed to raise rates to that level before stop, in its fight against inflation.
10-year Treasury rates continue to point higher, climbing to 4.257%, a record since 2008. 2-year Treasury rates also rose to 4.608%.
Inflation continues to pick up pace also in Japan, a country known for years rather for its stubborn deflation.
In September, core inflation – which excludes volatile fresh food prices in Japan – jumped year-on-year to its strongest pace since September 2014, thus to an eight-year record.
It is highlighted that the acceleration of inflation in the country still remains relatively under control, even if we consider the jump in energy prices and the collapse of the yen against the US dollar.
The 3% jump, in line with consensus expectations, follows the August rise, equal to + 2.8%, and corresponds to core inflation, which in Japan excludes fresh food prices, but includes costs energetic.
Including energy and food prices, Japan’s headline inflation again rose by 3%, unchanged from August.
Excluding both food and energy prices, Japan’s CPI advanced by 1.8% on an annual basis, compared to the previous + 1.6%.
It is the sixth consecutive month that inflation in Japan is above the target set by the country’s central bank, the Bank of Japan which, unlike the central banks of several other countries, does not seem willing not only to raise rates. to beat inflation, but to abandon its extraordinarily expansive monetary policy, a factor that is weighing on the yen.
The yen plunged after the data spread further above the JPY 150 dollar threshold tested yesterday, plummeting to a new 32-year low of JPY 150.39 on the greenback.