Markets Sink On Rising US Bond Yields 25 April 2018
Faizan Hashmi Published April 25, 2018 | 05:15 PM
Asian and European stock markets slid Wednesday on profit-taking, as investors fretted over rising US Treasury yields and speculation that interest rates will rise four times this year.
London, (UrduPoint / Pakistan Point News - 25th Apr, 2018 ) :Asian and European stock markets slid Wednesday on profit-taking, as investors fretted over rising US Treasury yields and speculation that interest rates will rise four times this year. New York equities had tumbled Tuesday after the yield on the 10-year US Treasury bond hit 3.0 percent for the first time in more than four years. "The European markets looked increasingly ugly as Wednesday went on, investors fearing what could happen after the US open," said Spreadex analyst Connor Campbell. Frankfurt was spooked the most by overnight losses on Wall Street, with the benchmark DAX index shipping more than 1.6 percent in value, while London and Paris each slid 0.6 percent. "European stock markets are in the red ...
as traders lock in their profits," added CMC Markets analyst David Madden. "The yield on the US 10-year government bond is back above 3.0 percent, and this is also a factor in the equity sell-off as investors seek attractive returns from assets that are deemed to be lower risk." - Comcast formalises Sky bid - London losses were tempered somewhat after US media giant Comcast confirmed a 22-billion ($31-billion, 25-billion-euro) firm offer for Sky. The news, which threatened to derail media mogul Rupert Murdoch's attempt to take full control of Sky, sent shares in the British pay-TV giant soaring more than four percent. In response to the Comcast news, Sky announced it had withdrawn its support for 21st Century Fox's �11.
4 billion bid for the 61 percent of the UK broadcaster that it does not already own. Asian markets earlier reversed tack after fresh losses on Wall Street. Technology firms were once again in the firing line on Tuesday as Google parent Alphabet plunged on cost worries, while Apple shares sank on concerns over the crucial smartphone sector. The yield on benchmark 10-year Treasuries broke through three percent on Tuesday as surging oil prices and the impact of President Trump's huge tax cuts fan inflation expectations. - 'Wave of selling' - "The US 10-year yield finally tagged the psychological 3% barrier and this seemingly weighed on risk sentiment whilst (tech) stocks were hit with a wave of selling," noted XTB analyst David Cheetham. There is a fear the higher yields will divert investor attention from equities as safe-bet government debt looks more attractive. That, along with an improving economy, has fanned talk the Federal Reserve will have to raise borrowing costs more than expected this year. In Asia, Tokyo ended 0.3 percent lower as a weaker Yen was unable to provide support. Japanese pharmaceutical giant Takeda plunged seven percent after it ramped up its offer for rival Shire, which is based in Ireland but listed in London. Rare diseases specialist Shire indicated its willingness to recommend the latest 46-billion bid, subject to certain conditions. That sent its share price rallying 1.39 percent to 39.84 in the British capital.
Related Topics
Recent Stories
Tennis: ATP Barcelona Open results - 1st update
Swiatek's perfect 10 in Stuttgart as Vondrousova stuns Sabalenka
Arandu's roads closed due to flooding
Oil tanker catches fire in Islamabad’s Blue Area
Pakistan committed to ensure safety of foreign nationals: FO
Tennis: WTA Stuttgart results - 1st update
Four passengers injured as train hit an empty vehicle
Over- speeding bus crushed to death two bike riders
Turkey's Freedom Flotilla ready to set sail for Gaza
French teen dies from heart failure after knife attack near school
Iranians appear unfazed by Isfahan blasts
UAF celebrates Int'l Chinese Language Day
More Stories From Business
-
Pakistan aims to agree outline of new IMF loan in May - Finance Minister
7 hours ago -
FTO commends FBR's role for prompt resolution of tax payers’ issues
7 hours ago -
BISP embraces E-procurement: launches inaugural tender
9 hours ago -
Business community indebted to Ahsan Zafar for his unprecedented services: Yousuf Rajput
9 hours ago -
China auto sector steps up Europe push with Spain plant
9 hours ago -
Condolence reference held in memory of FBR's officials
11 hours ago
-
Health activists ring alarm bells over 10-stick cigarette pack
11 hours ago -
Karachi receives maiden direct flight of Azerbaijan Airlines from Baku
11 hours ago -
PSX turns bullish, gains 619 points
12 hours ago -
Rupee bounces back; gains 13 paisa against dollar
11 hours ago -
Partners join hands for alternate use of marble, granite slury
11 hours ago -
Tokyo's Nikkei index tumbles 3% in morning trade
14 hours ago