- Markets are recovering after days of concern about a potential slowdown in US growth.
- US 10-year Treasury yields edged up to ease traders’ minds about the risk of recession.
- China continued its slump while US futures pushed higher.
Markets eased a sigh of relief on Tuesday after traders fretting about warning signs in the bond market dragged global stock markets lower.
The 10-year US Treasury yield ticked up higher, easing concerns of a slowdown in US growth. The so called yield curve in the bond market, typically a sign of recession, inverted last week, jolting markets.
On Tuesday, US stock futures gained slightly, with a mixed morning trading session in Europe amid prolonged Brexit chaos. Chinese stocks slumped, after falling sharply on Monday, while the Nikkei rallied 2.2%.
The benchmark Euro Stoxx 50 was broadly flat, ticking down 0.1%.
On Monday, China stocks tumbled on growth worries. Investors dumped the most China stocks on record, selling about $US1.6 billion in shares, according to Bloomberg.
“Mixed bag at the moment with caution the order of the day, according to Neil Wilson at Markets.com. “Recession fears continue to weigh on sentiment and we will be looking for data to drive sentiment,” he added.
Here’s the roundup:
- Futures on the Dow and S&P 500 are gaining at least 0.2%. Those on the Nasdaq are slightly higher, up 0.1%.
- The Shanghai Composite Index and the Hang Seng Index closed the day lower, falling 1.5% and 0.1%, respectively. The Nikkei jumped 2.2%.
- The Euro Stoxx 50 fell 0.1%, the Dax Index fell 0.2%, while the CAC Index and the FTSE 100 added 0.1%.
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