(As of 7:10 am PST)
US stocks are meandering
around the unchanged line after another day of losses yesterday. Global equity
markets suffered declines following a jump in European bond yields and remarks
yesterday from Fed Chairwoman, Janet Yellen, that US stock valuations appeared
high. Asian markets began Thursday’s trading with steep losses and never
recovered, while European indexes are climbing back toward the unchanged line.
In the US, investors remain cautious ahead of tomorrow’s non-farm payrolls jobs
report. Data today showed weekly jobless claims rose slightly from the prior
week. Recent weakness in equity markets has been pegged to the surprise move in
European bond yields as Eurozone bonds continue to get battered on changes in
inflation outlook. The increase in yields has hit stocks in Europe this week
and seems to be holding investors at bay in the US as well. Gold is down
slightly today while oil prices are back below $60 per barrel. Interest rates
are down while the US dollar is higher. Expect the cautious tone to persist
today as investors position themselves ahead of tomorrow’s highly anticipated
jobs report.
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