Treasury bonds extend their decline after Powell’s fall; Mixed actions: closing of the markets | Top Vip News

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(Bloomberg) — Treasuries extended Friday’s selloff after Federal Reserve Chair Jerome Powell said authorities will likely wait beyond March before cutting interest rates. Chinese stocks saw further wild swings after signs of official support.

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US 10-year bond yields rose six basis points after jumping 14 basis points on Friday following stronger-than-expected payrolls data. The “danger of acting too soon is that the job is not completely done,” Powell said in an interview on CBS’ 60 Minutes that aired Sunday in the United States.

The Treasury declines sent waves through bond markets, pushing down government debt from Australia to Germany. The dollar strengthened against most of its major peers. European stocks rose, while U.S. stock futures fell.

Traders have sharply reduced bets on a Fed rate cut in March after surprisingly strong jobs data on Friday raised concerns that there may be more work to be done to keep inflation at bay. Although U.S. officials have cemented the end of their aggressive tightening campaign, Powell’s comments on Sunday underscored how policymakers are rejecting the market’s still-lofty bets on cuts.

Earnings will be the focus in the European trading session, with UniCredit SpA rising 7% after posting a profit increase. Vodafone Group Plc shares fell, even after the company reported higher-than-expected sales.

In Asia, Chinese stocks experienced another volatile session as investors assessed the authorities’ latest promises to stabilize the sagging stock market. The benchmark CSI 300 index ranged between losses of 2.1% and gains of 1.7%.

“Whether or not today marks the bottom for Chinese stocks remains to be seen, but it certainly feels like we are hitting rock bottom as policymakers have signaled that they no longer want to see any further declines,” said David Chao, strategist. at Invesco Asset Management in Singapore.

Former US President Donald Trump also signaled he could impose a tariff on Chinese goods of more than 60% if elected, in a new round of tough rhetoric aimed at the US’s largest supplier of goods.

Oil rose as the United States promised more strikes against Iranian forces and proxies, while the Houthis vowed to retaliate against the weekend bombings. Gold weakened.

This week’s key events:

  • Eurozone S&P Global Services PMI and PPI, Monday

  • Australia rate decision Tuesday

  • Eurozone retail sales, Tuesday

  • Factory orders in Germany, Tuesday

  • Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker speak Tuesday.

  • Bank of England Deputy Governor Sarah Breeden speaks on Wednesday

  • Federal Reserve Governor Adriana Kugler and Richmond Fed President Tom Barkin speak Wednesday.

  • China PPI and CPI, Thursday

  • Pakistan general elections, Thursday

  • ECB Chief Economist Philip Lane and ECB Governing Council Member Pierre Wunsch speak on Thursday

  • The European Central Bank publishes its economic bulletin on Thursday

  • US Initial Jobless Claims, Thursday

  • U.S. Treasury Secretary Janet Yellen speaks at a Senate Banking Committee hearing on Thursday.

  • Reserve Bank of Australia Governor Michele Bullock gives parliamentary testimony on Friday

  • China’s aggregate financing, money supply and new yuan loans, Friday

  • Germany CPI, Friday

Some of the main movements in the markets:

Stocks

  • The Stoxx Europe 600 rose 0.3%, more than any closing gain since January 26 at 8:14 a.m. London time.

  • S&P 500 futures fell 0.1%

  • Nasdaq 100 futures fell 0.1%

  • Dow Jones Industrial Average futures fell 0.3%

  • MSCI Asia Pacific Index little changed

  • The MSCI Emerging Markets Index fell 0.2%

Coins

  • The Bloomberg Dollar Spot Index rose 0.1% to its highest level since December 11

  • The euro was little changed at $1.0784

  • The Japanese yen barely changed at 148.42 per dollar.

  • The offshore yuan was little changed at 7.2157 per dollar.

  • The pound sterling barely changed and stood at $1.2627.

CRYPTOCURRENCIES

  • Bitcoin rose 0.7% to $43,053.36

  • Ether rose 0.6% to $2,313.84.

Captivity

  • The 10-year Treasury yield rose six basis points to 4.08%

  • The 10-year German bond yield rose four basis points to 2.28%

  • The British 10-year yield rose four basis points to 3.96%

Raw Materials

  • Brent crude oil rose 0.3% to $77.56 a barrel

  • Spot gold fell 0.7% to $2,025.10 an ounce.

This story was produced with the help of Bloomberg Automation.

–With help from Richard Henderson and Ishika Mookerjee.

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