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Global markets were mixed overnight as the US markets stabilised after experiencing losses on Tuesday. The market has been swinging between gains and losses as investors mull the implications of rising US bond yields and as corporate earnings announcements are released.
The yield on 10-year US treasuries moved over 3% overnight for the first time since New Year’s Eve 2013, and for just the second time since 2011. As we touched on earlier this week, the pace of interest moves will be a key factor in driving equity market returns this year. The moves have also seen the US dollar continue to strengthen (as higher US interest rates improve the return on US dollar cash) and both the AUD & NZD are now at 4-month lows versus the US dollar.
Markets also continue to digest corporate earnings announcements in the US, and so far 71% of companies which have reported have beaten revenue expectations and 79% have beaten earnings expectations. Overnight Twitter was among the disappointments while shares in Facebook surged after hours on the back of a strong quarterly result.
Categories: International Stocks & Other