U.S. and Global Markets Advanced, Global Bond Yields Hovered Near Recent Highs

Barry Adams
28 Aug, 2023
New York City

Market indexes retailed upward bias in Monday's trading and tech stocks led gainers for the fifth session in a row. 

On Wall Street crude oil and commodities were in focus after China announced stimulus measures.  

Energy and base metal prices advanced on the hopes that China measures will revive the flagging confidence in stock markets and policymakers may announce additional measures to lift confidence in the property market. 

China's finance ministry cut stamp duty by half to 0.05% and lowered margin requirement to 80% from 100%, hoping to revive market confidence and support flagging markets. 

Market indexes in Hong Kong are down about 9% in the year so far, the worst performing market among 15 leading markets around the world and the Shanghai Composite index fell 1% in the period. 

The measures are likely to fall short in reviving market confidence as consumer confidence remains weak and corporations are looking to cut costs amid falling exports and weakening corporate profits.

Investors also reviewed the latest comments from the Federal Reserve Chair Jerome Powell last week. 

Investors are still divided about the future direction of interest rates but more market participants are looking for the Fed to lift rates at the next policy meeting in about three weeks. 

 

U.S. Indexes & Yields 

The S&P 500 index traded up 0.5% to 4,426.19 and the Nasdaq Composite gained 0.6% to 13,672.88.  

The yield on 2-year Treasury notes increased to 5.07%, 10-year Treasury notes inched higher to 4.22% and 30-year Treasury bonds edged up to 4.27%. 

West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April.  

Crude oil decreased $0.02 to $79.90 a barrel and natural gas prices decreased 2 cents to $2.55 a thermal unit. 

 

U.S. Stock Movers 

3M Company jumped 3.8% to $102.74 after a report from Wall Street Journal suggested that the company is close to settling for $5.5 billion for its liabilities related to military-grade earplugs. 

Boston Scientific Corporation jumped 4.8% to $53.20 after the company reported on Sunday encouraging results for its treatment of patients with abnormal heart rates. 

Xpeng Inc ADR increased 2.7% to $18.0 after the company agreed to acquire the smart electric car business from ridesharing company Didi for $744 million. 

Mister Car Wash Inc soared 8% to $7.45 after positive comments from analyst at the brokerage firm Piper Sandler. 

Mister Car Wash stock has fallen 21% in the year so-far. 

 

European Markets Closed Higher After China Stimulus Lifted Resource and Luxury Stocks 

European markets trade higher and bond yields edged up and investors search for bargains in industrial and financial sectors. 

Market averages in Paris and Frankfurt advanced on the first day of a new week after China announced new measures to support capital markets. 

The measures are likely to fall short in reviving market confidence as consumer confidence remains weak and corporations are looking to cut costs amid falling exports and weakening corporate profits.

But at least in today's trading, luxury stocks in Paris and resource stocks in London advanced on the hopes that China's measures will revive sales. 

 

Europe Indexes & Yields

The DAX index increased 1.0% to 15,792.61, the CAC-40 index advanced 1.3% to 7,324.71. 

Financial markets were closed today in London today. and the FTSE 100 index edged higher 0.07% to 7,338.58 in Friday's trading. 

In the previous week, the DAX index increased 0.4%, the CAC40 index advanced 0.7% and the FTSE 100 index gained 0.5%. 

The yield on 10-year German bonds decreased to 2.57%, French bonds traded lower to 3.10%, the UK gilts edged down to 4.44% and Italian bonds fell to 4.22%.

The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy. 

The euro edged lower to $1.081, the British pound to $1.252 and the U.S. dollar fetched 88.43 Swiss cents.

Natural gas prices traded volatile after local reports showed some progress between the workers' unions and Woodside Energy and Chevron in averting a long strike at LNG terminals. 

Brent crude decreased $0.03 to $84.51 a barrel and the Dutch TTF natural gas increased €0.99  to €35.78 per MWh.

 

Europe Stock Movers

Deutsche Bank, Commerzbank, BNP Paribas and Societe Generale jumped more than 1% after the ECB President Christine Lagarde stressed the need the for monetary policy to be restrictive enough. 

Renault SA advanced 1.5% to €36.97 after the French automaker with significant sales in China was in focus following the stimulus measures announced by China's finance ministry. 

French luxury products makers also advanced following China's stimulus news. 

Kering SA jumped 1.4% to €494.30, LVMH advanced 1.2% to €794.80, and Hermes International increased 1.2% to €1,905.0.