Global Markets:
● Asian Stock Markets : Nikkei up 1.14%, Shanghai Composite down 1.22% Hang Seng down 1.89% ASX down 0.56%
● Commodities : Gold at $4,310.25 (0.29%) Silver at $64.222 (0.35%), Brent Oil at 105.60 (-0.96%), WTI Oil at 93.08 (-1.60%)
● Rates : US 10-year yield at 5.191, UK 10-year yield at 5.3845, Germany 10-year yield at 3.6411
News & Data:
● (CAD) Retail Sales m/m 0.7% to 0.8% expected
Markets Update:
U.S. equity futures were little changed Thursday evening as Treasury yields continued to rise, keeping pressure on stocks and borrowing costs.
S&P 500 futures slipped 0.1%, while Nasdaq-100 futures also fell 0.1%. Dow Jones Industrial Average futures declined 59 points, or 0.1%. During Thursday’s regular session, both the S&P 500 and Nasdaq Composite finished nearly unchanged.
In Asia-Pacific trading, Japan’s Nikkei 225 gained 0.25%, while the Topix rose 0.40%. Australia’s S&P/ASX 200 declined 0.48%, and Hong Kong’s Hang Seng Index dropped 1.46%. Mainland China and South Korean markets were closed for a holiday.
The bond market remained under pressure. The 10-year Treasury yield climbed to 5.225%, its highest level since 2007, while the 30-year yield reached 5.502%. Hawkish comments from Federal Reserve Governor Michael Barr, elevated energy prices linked to the Iran war and stronger-than-expected economic data have contributed to the recent rise in yields.
Fed funds futures indicate traders see about a 68% chance of an October rate hike, according to CME FedWatch. Meanwhile, the 30-year fixed mortgage rate rose to 7.45%, its highest level since 2024.
For the week, the Dow is down 0.6%, while the S&P 500 has gained 0.7% and the Nasdaq is up 1.6%. Investors will focus Friday on University of Michigan consumer sentiment and durable goods data.
Upcoming Events:
● 2:00 PM GMT – USD Revised UoM Consumer Sentiment
