19 Jan 2022
Stocks Trim Global Selloff while Bonds Surge
The Index Today
On Wednesday, stocks whittled a global selloff while the ongoing earnings season assuaged worries over climbing bond yields.
This comes as Richmonte and Burberry Group Plc exceeded expectations as U.S. futures and Stoxx 600 Index traded slightly higher after a rebound. Asian shares dropped for the fifth day in a row amid anticipation that the 10-year U.S. Treasury yields will reach the top 2%.
This comes as the Federal Reserve is expected to hike interest rates as early as March while the Bank of England (BoE) became the first major bank to increase borrowing rates last month. However, it may impose additional hikes next month on the account of the British CPI rising to a 30 year-high in December, putting more pressure on the BoE.
Meanwhile, the dollar dropped while Turkey restarted operations at an important crude pipeline after it exploded on Tuesday.