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- Markets are quiet, but fears remain – U.S. expected to open in red
Markets are quiet, but fears remain - U.S. expected to open in red
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Loading...European shares edged lower following a late downswing in Asia as markets struggled to find stability after last week’s rout. The dollar weakened against most major currencies as the yen soared and Treasuries climbed.
S&P 500 futures pointed to a retreat in U.S. stocks at the market open after two days of gains. Japan’s equities erased an earlier advance as the yen rallied to the strongest since Nov. 2016. The 10-year Treasury yield fell back after touching 2.89 percent. Commodities found support from the weaker dollar, with metals higher, and bullion set for back-to-back gains. The pound advanced as data showed U.K. inflation held at 3 percent in January.
A jump in global equities yesterday wasn’t enough to put traders’ minds at ease that the volatility that wiped $2 trillion from U.S. stocks last week has come to an end. Consumer-price data due Wednesday could give some clues on direction, given that pressure on equities has been emanating from the outlook for inflation.
Hedge funds and other large speculators have boosted bets on Treasury futures to a record, indicating they expect the 2018 bond-market rout will resume in the days ahead. An investor at Goldman Sachs Asset Management warned Treasury 10-year yields could rise to as high as 3.5 percent in the next six months as the market prices in a steeper pace of Federal Reserve tightening.
Source: Bloomberg Pro Termial
Jr Trader Alexander Kumanov
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