NEW YORK (Reuters) – Global equity markets woke up on Friday, even as the Nasdaq and S&P 500 tried to recover and the bond mode slowed slightly, but fears of rising inflation remained under pressure as data showed a strong reversal in U.S. consumer spending. .
Shares of Amazon.com Inc, Microsoft Corp. and Alphabet Inc. rallied after taking control of this week’s downdraft, while finance and energy shares fell.
The S&P 500 gained 0.80% and the Nasdaq Composite added 1.87%. But the Dow Jones industrial average fell 0.3%.
U.S. consumer spending rose to a record high in seven months in January as low-income households received more pandemic relief money and new COVID-19 infections fell, setting the U.S. economy to grow faster ahead.
The 10-year Finance benchmark note on Thursday touched 1.614%, the highest level in a year, mocking global markets. The pound’s yield is up more than 50 basis points a year so far and is now close to the S&P 500 stock allowance yield.
The 10-year note fell 1.7 basis points to 1.4977%.
The amount of money going through U.S. markets and stocks near high-term levels has caused angst for investors, said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.
“A lot of people are making some profits and they may not be investing that money to some extent yet,” Kinahan said, but the pull of the war is not over a year.
“The US equality market is still the best game in terms of safety against opportunity. But there is a movement. ”
The recent sales volume of the Treasury prompted the Australian central bank to launch bond buying activity to try to stop the inflation.
The MSCI benchmark for global equity markets slipped 0.83% to 661.49.
In Europe, the FTSEurofirst 300 broad index closed down 1.64% at 1,559.48. Technology stocks lost most as they continued to pull back from 20-year highs.
The dollar rose against most major currencies as U.S. government bond yields held near one-year highs and more risky currencies such as the Aussie dollar weakened.
The dollar index rose 0.578%, with the euro down 0.78% to $ 1.2081. The Japanese yen weakened 0.42% against the greenback at 106.66 per dollar.
Gold fell more than 2% to an eight-month level, the stronger dollar and a rise in the Treasury led to an updated bullion and set it on track for the worst month since November 2016.
German government bond yields fell for the first time in three sessions but were still headed for the biggest monthly jump in three years after a rise in expectations of retail inflation.
The 10-year German bund pound fell less than 1 basis point to -0.263%.
European Central Bank executive board member Isabel Schnabel confirmed on Friday that changes in nominal interest rates need to be closely monitored.
Copper recovered after hitting multi-year peaks in six consecutive sessions, falling more than 3% as sentiment of risk hit wider financial markets after spike in bond yields.
Three-month copper on the London Metal Exchange (LME) fell to $ 9,112 per tonne.
The MSCI Emerging Markets equities index suffered the biggest daily fall since the markets woke up in March. The MSCI markets index fell 3.06%.
The rise in Treasury yields led to an upheaval in emerging markets, which feared that the better yields available in the United States could attract money.
Traders ’favorite currencies suffered leveraged behavior, including Brazilian and Turkish real lira, which slipped for a fifth straight day, derailing the all-year gain.
Asia earlier saw the heaviest sales, with MSCI’s broadest index of Asia-Pacific shares outside Japan slipping more than 3% to a one-month low, the sharpest one-day percentage loss from market use at the end of March.
Oil fell. Brent crude futures fell $ 0.78 to $ 66.1 a barrel. US crude futures slipped $ 1.24 to $ 62.29 a barrel.
Reporting by Herbert Lash, additional reporting by Tom Arnold in London, Wayne Cole and Swati Pandey in Sydney; edited by Larry King and Nick Zieminski