Treasuries edged lower and Asian bonds followed as rising energy costs fueled inflation concerns and strengthened bets on a Federal Reserve interest-rate hike. Crude oil extended its rally. Yields on the benchmark 10-year Treasury note rose two basis points to 5.01%, matching the highest since 2023 reached Monday in the New York session. The yield is just shy of the 5.0187% level, a breach of which will take it to the highest since 2007. Weighing on sentiment, Brent climbed 1.3% to about $107.05 a barrel, extending the gains this month to over 18%. Oil pushed higher as traders weighed risks to Middle East supplies, with a critical Saudi Arabian pipeline still offline after attacks. Rising oil prices and the selloff in Treasuries weighed on Asian bonds with government debt in Australia, Japan, New Zealand and India edging lower. Elsewhere, Asian stocks slipped 0.4% after chip shares declined globally on Monday following a warning from leading artificial intelligence companies. The surge in oil prices and a hotter-than-estimated US inflation reading last week have heightened concerns ahead of Wednesday’s Fed decision, with traders pricing in a more-than-90% chance of a rate increase. Fed officials have grown increasingly concerned about stubbornly high inflation, with three policymakers dissenting in favor of a hike at their July meeting. The bond selloff reflected broader pressure on long-term borrowing costs across major developed markets, with a gauge of global government yields still at elevated levels. Widening fiscal deficits, heavy debt issuance and financing for AI investment are prompting investors to demand greater compensation for holding longer-dated debt. The recent rout in the bond market has increased the stakes for Fed Chair Kevin Warsh going into the central bank’s policy announcement on Wednesday. Treasury yields serve as a benchmark for borrowing costs across the economy and as a discount rate for valuing future corporate profits. As yields rise, those earnings become less valuable in today’s terms, putting pressure on stock valuations. Higher bond returns may also lure investors away from stocks, challenging a rally powered by strong AI profits and a resilient economy. In other corners of the market, gold held its losses to trade around $4,300 an ounce, after falling more than 1% the previous session to a five-week low. Higher rates typically diminish the appeal of the non-yielding metal. A Bloomberg gauge of the dollar edged up 0.1% after posting its biggest jump in more than two months in the prior session. Stocks in mainland China advanced even as consumer spending and investment languished in August.
Investors are also assessing the outlook for technology shares after global equities retreated Monday following calls from leading AI developers for a slower pace of advances in the field in order to prevent AI slipping beyond human control and inflicting catastrophic harm. US President Donald Trump attacked Anthropic’s chief for urging a slowdown in AI development, intensifying his opposition to new guardrails. US After Hours ENVA -18.9% after withdrawing bank regulatory applications; PLAY -12.9% lower on earnings; RLGT +9.5% higher on earnings.
Nikkei +0.08% Hang Seng -0.54% CSI -0.16% Kospi -0.64% Shanghai -0.21% Shenzen -0.29%
Eur$ 1.1537 CNH 6.7111 CNY 6.7107 JPY 154.71 GBP 1.3485 CHF 0.8182 RUB 84.5501 TRY 48.6375 WTI$ 103.18 +1.80% Gold 4,304.5 -0.25% BTC 77,550 -1.91% ETH 2,492 -3.04%
S&P -0.32% Nasdaq -0.36% EuroStoxx +0.03% FTSE -0.20% Dax +0.09% SMI
Macro :
- Trump Policies Speed European Campaign for Space Self-Reliance
- Bearish Stock Bets Leave Asia With Weakest Positioning: Citi
- BlackRock Raises EM Equities Back to Overweight on AI, Earnings
Keep an eye on :
Keep an eye on :
- ANE SM : EQT, Norges Join Forces to Bid for Acciona Energía: Expansión
- ADS GY : Benfica, Adidas Extend Record €120 Million Sponsorship Deal
- AIR FP : Airbus Trims Long-Term Jet Sales Forecast in Asia-Pacific Region
- CS FP : Axa Sets New Growth Targets in 2027-29 Strategic Plan
- SLBEN PL : Benfica, Adidas Extend Record €120 Million Sponsorship Deal
- CBK GY : Germany tells Andrea Orcel to keep Commerzbank’s Frankfurt HQ after takeover
- ECHO US : Dish, Cell Tower Owners Pause Litigation for Deal Talks
- ECHO US : Dish, Cell Tower Owners Pause Litigation for Deal Talks
- EQT SS : EQT, Norges Join Forces to Bid for Acciona Energía: Expansión
- Euclyd IPO : Samsung backs Nvidia AI chip rival in $230 million funding round as GPU alternatives boom
- GLV ID : Glenveagh Holder Teleios Capital Partners Offers 20m Shares
- GOOGL US : Waymo Prepares Autonomous Ride-Hailing Service in Tokyo in ‘27
- GOOGL US : Google Should Change Its Thinking on Finland Plant, Trump Says
- FRES LN : Fresnillo Names Sandoval CFO-Designate to Replace Arreguín
- FRES LN : Fresnillo Names Sandoval CFO-Designate to Replace Arreguín
- JNJ US : Contineum Says JNJ-5120/PIPE-307 Fails Phase 2 Trial
- LMT UD : Lockheed Wins $1.21 Billion U.S. Army Contract
- MC FP : Loro Piana CEO Frédéric Arnault bets on scarcity to sustain brand’s rise, Family scion admits to feeling pressure in new role as Arnault siblings vie to succeed their father at the top of LVMH - FT
- MAERSKB DC : Maersk Keeps Defying Bearish Expectations as Shares Soar
- META US : Anthropic’s AI Caution Could Hand Meta an Edge: Equity Insight
- PGHN SW : Partners Group Provides €300 Million Financing for MDT Buyout
- 005930 KS : Samsung backs Nvidia AI chip rival in $230 million funding round as GPU alternatives boom
- SBBB SS : SBB to Carry Out Buy-Back Offer For D Shares, Sweden’s SBB Plans Share Buyback to Simplify Capital Structure
- SPCX US : SpaceX to Get Weighting Boost in Nasdaq 100 This Month: TMT Wrap
- STAN LN : StanChart Says Criteria on Provisions Not Met in 1MDB Lawsuit
- TEM US : Tempus AI Founder Supports Anthropic CEO’s Call for Slowdown
- TRMDA DC : Oaktree Offers Torm Shares for Up to $34 Each: Terms
- TTE FP : Vitol, TotalEnergies Get Bangladesh Contracts
- UCG IM : UniCredit’s Orcel Says Klingbeil Talks Were ‘Good, Constructive’
- WSU GY : Washtec Cuts Management Board to Two; Cuts FY Guidance
- WIX LN : Wickes 1H Revenue Meets Estimates