Global stocks stabilize and euro zone revenues decline

2023-12-05 12:06:44

Noha Makram – Live – German 10-year government bond yields fell to their lowest levels in six months on Tuesday, while global stocks settled at their highest levels in four months as traders strengthened their bets on the European Central Bank cutting interest rates in early 2024 and maintained their expectations about the US Federal Reserve.

German 10-year bond yields fell by 7 basis points to 2.28%, which is their lowest level since June 2, after Isabel Schnabel, a member of the European Central Bank’s Board of Directors, told that the central bank may give up more… From raising interest after the sudden noticeable decline in inflation.

It is noteworthy that bond yields move inversely with their prices, and government bond prices declined in most developed markets during 2022 and at the beginning of this year with the rapid rise in interest rates.

Traders are almost fully anticipating the ECB to cut interest rates by 25 basis points during the March meeting, and by about 150 basis points by the end of 2024.

The euro declined and then recovered, then falling slightly in the latest trading to $1.0829.

Traders also expect US interest rates to be cut by 50 basis points by June. US 10-year bond yields fell by 5 basis points to 4.24%, erasing the previous day’s gain of 6 basis points.

Stock markets fell somewhat today, with the Morgan Stanley World Stock Index falling by 0.17% from its highest levels in four months, yesterday, Monday, when expectations of an interest rate cut boosted stock prices in the United States and Europe.

The Stoxx 600 index stabilized in Europe, while US stock futures on the S&P 500 index fell by 0.25%.

While the Morgan Stanley Index of Asian stocks other than Japan fell by 1.1%, with the Hong Kong Index representing the largest part of the decline, as it fell by 1.9%.

It is worth noting that the Hang Seng Index has fallen by more than 17% since the beginning of the year until now, while global stocks have risen by about 15%.

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US stocks fell at the close of trading on Monday

Eurozone inflation slips below expectations to 2.4%

Expectations of a continued slowdown in US inflation in 2024 and a division over interest cuts

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