Home Business Wall Street restarts with the Dow Jones flirting with the bear market. 2y Treasuries rates fly over 4.3%

Wall Street restarts with the Dow Jones flirting with the bear market. 2y Treasuries rates fly over 4.3%

by admin

The crash of the pound continues to be a great protagonist of today’s session, frightening the markets more than the victory of the center-right in the Italian political elections. Elections that ushered in the era of a very probable Meloni government. Known for having often raised her voice against the European Union and its rules, the leader of the Brothers of Italy is now moderate, which is why it is more UK Gilt government bonds than BTPs that are harassed.

The monstrous plan of tax cuts signed by the British government of Liz Truss continues to put the assets made in the UK under pressure so that, during the trading of the Asian markets, the pound has collapsed by almost -4%, testing a new all-time low against of the US dollar, at $ 1.0382.

At 14.00 Italian time, the pound reduced its losses, dropping by more than half a percentage point to $ 1.0782. The euro lost 0.48% to 0.9643.

Focus also on sales on UK public debt: according to Bloomberg surveys, ten-year yields on ten-year UK government bonds have flown in the last hours up to +29.4 basis points, up to 4.12%, to against a rise in ten-year BTP rates which was limited to +9 basis points at 4.43%.

The upward march of US Treasury yields also continues: two-year US government bond rates, those most sensitive to the Fed’s monetary policy decisions, have now flown over 4.3%, up to 4.351%, in value. highest since August 2007.

Futures on the main US stock indices were negative, after the umpteenth closing down on Wall Street last Friday, which saw the Dow Jones capitulate by 486 points to the new intraday low of the year, losing 1.62%, to 29,590.41 points; the Nasdaq slipped 1.8% to 10,867.93 and the S&P 500 also hit the lows since June with a 1.72% loss to 3,693.23.

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At approximately 13.50 Italian time, the futures on the Dow Jones fell by more than 150 points (-0.56%), the futures on the S&P 500 fell by 0.63%, while the futures on the Nasdaq Composite fell by 0.51%.

The Dow Jones closed below the 30,000 point mark for the first time since June 17, returning to flirt with the bear market, as it fell 19.9% ​​from its intraday record. At one point in last Friday’s session, where the dominant theme was the announcement of Liz Truss’s UK government shock tax cut plan, the Dow Jones capitulated by 826 points.

The US stock market ended its fifth negative week of the past six, with the Dow Jones losing 4% during the week, and the S&P 500 and Nasdaq down 4.65% and 5.07% respectively.

The fear of rates is still the protagonist on Wall Street after last week the Fed led by Jerome Powell carried out its third consecutive monetary tightening of 75 basis points, bringing US fed funds rates to a record since 2008, in the range between 3 % and 3.25%, with the aim of stopping galloping inflation.

The bullish march in Treasury yields continues: two-year US government bond rates, those most sensitive to the Fed’s monetary policy decisions, have now flown over 4.3%, to 4.351%, the highest value since August 2007.

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