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Stocks slip in Asia as oil and yields climb
Reuters • • general
Key Points:
- Share markets declined as oil prices surged due to ongoing tensions between the US and Iran, with Brent crude rising 2.7% to $107.16 a barrel amid doubts of a near-term truce.
- Central banks are expected to continue tightening monetary policy, with the Reserve Bank of Australia likely to raise rates, and markets pricing in a 68% chance of a Federal Reserve hike in October.
- Despite rising bond yields, strong US economic data and global growth, supported by AI investment, have sustained positive corporate earnings expectations and equity markets near record levels.
- Bond yields, particularly on 30-year Treasuries, have climbed to levels not seen since 2004, reflecting market anticipation of prolonged higher interest rates and increasing borrowing costs globally.
- The US dollar strengthened to two-month highs, while commodities like gold fell due to rising yields; upcoming US economic reports, including the September payrolls, are highly anticipated by investors.
