Global stock markets – US shares slip, treasury yields and gold rise
US shares slipped on Tuesday while treasury yields and gold rose as investors anticipate higher interest rates by the Federal Reserve in the path ahead.
The S&P 500 fell 0.16% at 3,971.27. The Dow Jones Industrial Average lost 0.12% at 32,394.25. The Nasdaq Composite dropped 0.45% at 11,716.08.
Stocks of energy companies rallied on rising crude oil prices.
On Monday, most stock markets gained, led by banks after First Citizens Bank acquired large portion of assets of Silicon Valley Bank (SVB).
Treasury yields
US treasury yields pared gains on Tuesday after the treasury department saw a high demand for an auction of five-year notes.
The yield on 10-year notes rose 3.6 basis points (bps) to 3.564%, from 3.528% on Monday. The yield on 30-year bond added 2.2 bps to 3.7819%.
The yield on 2-year note rose 9.5 bps to 4.0598%.
The treasury department sold $43 billion in five-year notes at a high yield of 3.665%.
The treasury will also sell $35 billion in seven-year notes on Wednesday.
Bullion
Gold prices surged on weak US dollar as bank sector fears eased. Spot gold surged 0.9% at $1,973.49 an ounce.
The US dollar declined against a basket of currencies for the second day in a row.
European stocks
European stocks closed flat on Tuesday amid lingering fears of banking crisis. The pan-European STOXX 600 index lost 0.06%. During intraday, the index advanced as much as 0.8%.
Germany’s DAX gained 0.1% at 15,142.02. France’s CAC 40 added 0.1% at 7,088.34. Britain’s FTSE 100 rose 0.2% at 7,484.25.
Asian stocks
Asian stocks ended up on Tuesday tracking gains in the US and European markets on Monday. MSCI’s broadest index of Asia-Pacific shares, outside Japan, rose 0.81%.
South Korea’s Kospi gained 1.1% to 2,434.94. Hong Kong’s Hang Seng rose 0.9% to 19,751.94. The Shanghai Composite fell 0.2% to 3,245.38. Japan’s Nikkei 225 added 0.2% to end at 27,518.25. Australia’s S&P/ASX 200 jumped 1.0% to 7,034.10.
Crude oil
Oil prices advanced on Tuesday on supply disruption from Iraq’s Kurdistan region.
Brent settled at $78.65, up 0.7% on Tuesday. US crude futures ended up 0.5% at $73.20 per barrel.
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