13 November 2024
US stocks and Treasuries fell ahead of CPI inflation data.
European stocks and government bonds fell.
Asian stocks declined.
US stocks fell on Tuesday amid higher Treasury yields. The S&P 500 ended 0.3% lower.
US Treasuries fell sharply (yields jumped) ahead of US CPI inflation data as investors pared expectations for the extent of Fed rate cuts over the next year. 10-year yields rose 13bp to 4.43%.
European stock markets fell on Tuesday amid concerns over US policy uncertainty. The Euro Stoxx 50 fell 2.3%. The German DAX lost 2.1%, as the French CAC dropped 2.7%. In the UK, the FTSE-100 fell 1.2%.
European government bonds fell (yields rose) on political uncertainty in the US and Germany. 10-year German yields were up 3bp to 2.36%, as French yields rose 4bp to 3.12%. In the UK, 10-year gilt yields climbed 8bp to 4.50%.
Asian stock markets broadly fell on Tuesday amid lingering geopolitical concerns and weaker currencies in the region. Chinese equities declined following weaker-than-expected October credit data, with China’s Shanghai Composite and Hong Kong’s Hang Seng dropping 1.4% and 2.8%, respectively. Japan’s Nikkei 225 slid 0.4% on some downbeat corporate earnings, as Korea’s Kospi declined 1.9%, led by losses in electronics stocks. Elsewhere in Asia, India’s Sensex lost 1.0%.
Crude oil prices held near a two-week low on Tuesday amid a stronger US dollar, and as OPEC cut its demand growth forecasts. WTI crude for December delivery settled at USD68.1 a barrel (+0.1%).
In the US, the NFIB small business confidence index increased to 93.7 in October from 91.5 September.
In India, headline CPI inflation picked up more than expected in October, up 6.2% yoy (vs. consensus forecast of +5.9% yoy) from a 5.5% yoy gain in September. The acceleration was led by higher food prices, though core inflation also rose.
In the UK, the unemployment rate rose to a four-month high of 4.3% in the three months to September, from 4.0% in August, as the UK labour market shows signs of softening.
In the US, headline CPI inflation likely picked up on energy prices in October to 2.6% yoy, from 2.4% yoy in September, but core inflation should trend lower in the coming months.
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