Tag Archives: n

Business

European tech stocks and Nasdaq-100 futures climb on bond yield easing as ECB decision awaits

Leave a comment

European stocks traded higher on Thursday ahead of a European Central Bank decision, as investors celebrated an easing in bond yields.

Up six of the last eight sessions, the Stoxx Europe 600
SXXP,
+0.26%
edged up 0.2%.

The yield on the U.S. 10-year Treasury
TMUBMUSD10Y,
1.491%
fell below 1.5% for the first time in a week after U.S. core consumer prices saw a muted rise in February, taking air out of the fears of inflation that had recently worried traders. ECB President Christine Lagarde is to further explain the central bank’s worry that rising bond yields could interfere with monetary policy, at a news conference following the policy decision. 

“While we do not expect the central bank to announce new measures, ECB President Christine Lagarde will strike a dovish tone, emphasizing the flexibility embedded in its pandemic QE [quantitative easing] program to front-load asset purchases as needed,” said economists at research service TS Lombard.

U.S. stock futures
ES00,
+0.73%
were stronger, particularly the technology-heavy Nasdaq-100
NQ00,
+1.81%,
which closed lower on Wednesday.

In Europe, tech stocks including microchip equipment maker ASML
ASML,
+2.64%,
technology investor Prosus
PRX,
+2.68%
and microchip maker Infineon Technologies
IFX,
+3.23%
advanced.

Banks including HSBC
HSBA,
-1.98%
and Barclays
BARC,
-1.53%
traded lower as yields fell.

Also read: Eurozone banks are showing life after 15 rough years. Will the ECB snuff out the rally?

Engine maker Rolls-Royce
RR,
+2.08%
rose 1%. The struggling company, which reported an underlying £4 billion loss in 2020, says it expects to be free cash flow positive in the second half of the year.

Read original article here

Business

Investors flee bonds and snap up commodities on economic recovery hopes, while European stocks trade lower

Leave a comment

Investors continued to flee bonds and snap up commodities on hopes the rollout of vaccines will reinvigorate the global economy, sending European stocks lower on Monday.

The yield on the benchmark 10-year Treasury
TMUBMUSD10Y,
1.363%
rose to 1.37%, after rising 14.5 basis points last week. The yield on the 10-year U.K. gilt
TMBMKGB-10Y,
0.698%
and German bund
TMBMKDE-10Y,
-0.315%
also increased. Yields move in the opposite direction to prices.

U.K. Prime Minister Boris Johnson on Monday is set to unveil England’s reopening plan, that will start with schools and by the end of March extend to golf courses and tennis courts, according to published reports. The country’s furlough plan is set to be extended through the summer.

Globally, new coronavirus cases have dropped after peaking in January.

Copper
HG00,
+0.76%
and palladium
PA00,
+0.14%
led an advance in much of the metals complex on Monday.

“One of the (many) hot stories in financial markets right now is the surge in base metal prices, where the likes of copper, tin, nickel, lead and zinc are all rallying on the back of global recovery hopes and supply challenges. This comes at a time when investors are coming around to the view that the Fed really does want to let inflation run hot and that bonds are certainly not an asset class to hold in the current environment. The key challenge for financial markets is whether the bond sell-off can prove orderly enough to allow reflationary asset classes – including equities to prosper,” said strategists at ING.

After squeaking out a 0.2% rise last week, the Stoxx Europe 600
SXXP,
-0.90%
slumped 1.1%. U.S. stock futures
YM00,
-0.58%

ES00,
-0.74%

NQ00,
-1.18%
also were lower.

Miners including BHP Group
BHP,
+0.42%
and Rio Tinto
RIO,
-0.88%
advanced, and banks including HSBC Holdings
HSBA,
+0.05%
were helped by the steepening of the yield curve, which is suggestive of higher margins.

Tech-sector plays such as microchip equipment maker ASML Holding
ASML,
-2.29%
fell. Also lower were companies that have thrived during the pandemic, such as fast-food delivery company Delivery Hero
DHER,
-4.23%,
mealkit preparer HelloFresh
HFG,
-4.48%
and supermarket delivery firm Ocado
OCDO,
-4.57%.

Read original article here