UPDATE: European markets are experiencing a moment of stabilization today, following a tumultuous bond selloff that rattled global equities. US 30-year bond yields have surged back to the critical 5% threshold, raising concerns among investors.
In the wake of yesterday’s turmoil, US S&P 500 futures are rebounding, up 0.5% as tech stocks show signs of recovery. The UK 30-year yields have also spiked to 5.66%, while Japan’s yields hit a staggering 3.29%, the highest level in over two decades.
As the market digests these developments, UK Finance Minister Rachel Reeves has emphasized that “Britain’s economy is not broken,” attempting to reassure investors amid rising yields. In Japan, trade negotiator Akazawa is reportedly making arrangements for a crucial visit to the US tomorrow, indicating ongoing discussions about economic ties.
The Eurozone has reported a 0.4% increase in July’s Producer Price Index, exceeding the 0.2%% expected, while the final services PMI for August stands at 50.5, slightly below preliminary estimates. Meanwhile, the UK’s final services PMI reflects a better-than-expected score of 54.2, showcasing resilience in the sector.
Despite a calmer trading atmosphere today, US MBA mortgage applications for the week ending August 29 fell by 1.2%, a notable increase from the previous 0.5%% decline.
In commodities, gold prices have edged up to $3,547.16, buoyed by its recent performance above the $3,500 mark, while silver remains steady at around $40.90. However, oil prices have taken a hit, with WTI crude dropping by 2% to $64.29 amid reports that OPEC+ may consider another output hike during their upcoming meeting this Sunday.
As trading continues, all eyes will be on the bond markets and upcoming economic indicators that could influence investor sentiment. The shifting landscape of yields and economic data highlights the urgency for market participants to stay informed.
Stay tuned for further updates as this story develops.
