China’s government bond investors are betting that a surge in yields in the past month, driven by concerns of accelerated bond issuance, is overdone and prices will rise again as funding conditions ease in the fourth quarter. As China heads into a week-long national holiday break on Friday, bonds appear to be recovering after a month during which 10-year yields CN10YT=RR rose to 2.74% from 2.53%. That rise in yields followed a slew of stimulus measures that stoked the possibility of an economic rebound as well as heavier bond issuance ...

China’s official PMI likely to show expansion China’s official PMI shows that manufacturing activity contracted for five consecutive months between March and August. Recently released data on Chinese industrial profits showed a rise after five consecutive contractions, which might signal that the economy has stabilised to a certain extent. We believe that the official manufacturing PMI for September will show a slight expansion reading of 50.2. With the improvement in recent activity data including retail sales, the non-manufacturing PMI may also increase slightly to 51.3. Central bank meetings in Australia ...

World shares nudged higher on Friday, while better-than-expected euro zone inflation data boosted government bonds, with both asset classes still set for their worst quarter in a year in response to central banks’ pledge to keep interest rates high. MSCI’s broad index of global stocks gained 0.4% on Friday, while European and U.S. government bonds rallied strongly to reflect markets resetting interest rate bets. In a surprise bout of good news for hawkish central banks, data showed headline inflation in the euro area rose 4.3% in September year-on-year, below economists’ ...

Trading in shares of China Evergrande (HK:3333) Group was suspended on Thursday after a report that its chairman had been placed under police watch, as concerns mounted about the cash-strapped developer’s future amid growing liquidation risk. With more than $300 billion in liabilities – roughly the size of Finland’s gross domestic product – Evergrande has become the poster child of a debt crisis in China’s property sector, which contributes to roughly a quarter of the economy. Trading in the shares of Evergrande and two of its units were suspended on ...

European shares edged lower for a sixth straight day on Thursday in choppy trading, with gains in energy stocks limiting losses, while investors awaited inflation data from Germany, the euro zone’s biggest economy. The pan-European STOXX 600 index reversed early gains and slipped 0.2% by 0809 GMT, while Germany’s DAX eased 0.2%. Investor focus turned to consumer price index (CPI) data from Germany due at 1200 GMT, ahead of the euro zone inflation numbers on Friday. “Expectations are for headline CPI in Germany to slow from 6.4% to 4.5%, which, ...

The share of Russia’s imports invoiced in Chinese yuan soared to 20% in 2022 from 3% a year earlier after its invasion of Ukraine unleashed a raft of sanctions that cut the country out of the global financial system, a new study found on Wednesday. The sharp increase represents a shift away from U.S. dollar and euro transactions, which declined in the same period to 67% from up to 80%, the European Bank for Reconstruction and Development (EBRD) found in the report. “After Russia’s full-scale invasion of Ukraine in February ...

Hedge funds increased their bearish bets mainly on U.S. stocks last week when the major stock indexes plunged, Goldman Sachs GS.N showed in a report. The bank said its clients mostly added short positions while also getting rid of long positions. Among sectors, consumer discretionary, industrials and financials were the most net sold. “Hedge funds have been pressing U.S. shorts in five of the past six weeks, and this week’s notional short selling was the largest since Sept.22,” Goldman Sachs’ prime brokerage team wrote. Hedge funds added short positions mainly ...

Global stocks inched higher on Wednesday as investors found a footing after a sharp sell-off the previous day, while U.S. Treasury yields dipped after hitting their highest level since 2007. Stocks and bonds have dropped in recent weeks as investors come to terms with the idea that central banks will hold interest rates “higher for longer” than previously expected, as officials try to squeeze inflation out of economies. The Europe-wide STOXX 600 index was up 0.2% on Wednesday, after falling 0.6% in the previous session in its fourth straight daily ...

As many as 18 new exchange-traded funds (ETFs) are scheduled to launch in the United States market this week, more than double the average weekly total of 8.5 so far this year. The flurry of new offerings would bring the total of ETF launches this month to 57, a record for this year and handily beating the 53 that arrived on the market in September 2022, according to data from CFRA Research. The products include five new ETFs from Capital Group, a cluster of eight from Brookstone Asset Management, and ...

China’s local governments sharply accelerated special bond issuance for infrastructure in August, official data showed on Tuesday, as part of its efforts to shore up economic growth. Local governments issued a net 600.7 billion yuan ($82.19 billion) in special bonds in August, more than triple July’s 196.3 billion yuan, according to data released by the finance ministry. Local governments issued a net 3.098 trillion yuan in special bonds in the first eight months of the year, the data showed. China is aiming to complete issuance of the 2023 special local ...

U.S. Treasury yields hit a peak not seen since the early tremors of the 2007-2008 global financial crisis on Tuesday, as mounting fears of rates staying elevated for longer sent jitters through risk assets globally and pushed the dollar to a 10-month high. Asian and European stock benchmarks sagged, with U.S. equities set to follow suit, and crude oil retreated from 10-month highs on remarks from Federal Reserve officials that drove a bearish steepening of the U.S. yield curve. The yield on 10-year Treasury notes rose as high as 4.566%, ...

A hawkish stance from the Federal Reserve, soaring Treasury yields and a looming government shutdown are adding to a cocktail of risks that has spooked investors and clouded the outlook for U.S. equities. U.S. stocks have slid more than 6% fromtheir late July highs, andthe past week has been particularly nerve-wracking for investors. The Fed projected it would leave interest rates at elevated levels for longer than expected, sparking selloffs in U.S. stocks and bonds. The S&P 500 .SPX tumbled 2.9%this week, its biggest weekly decline since March.Investors sold global ...

Global shares fell on Monday, extending last week’s slide as central banks reinforced the message that interest rates would stay higher for longer, while investors braced for high-stakes U.S. inflation data on Friday. Last week brought a mixed bag for investors. On the one hand, the likes of the European Central Bank and the Bank of England signalled they may not raise rates again. On the other, the Federal Reserve kept rates unchanged, but Chair Jerome Powell made it very clear the soft landing that many investors are banking on ...

Wall Street see-sawed to a lower close on Friday, capping a tumultuous week during which benchmark Treasury yields hit 16-year highs and investors digested the Federal Reserve’s hawkish outlook revisions. All three major U.S. stock indexes oscillated for much of the session but ended red. All three posted weekly losses, with the S&P 500 and the Nasdaq registering their largest Friday-to-Friday percentage drops since March. On Thursday, the S&P 500 dipped below its 100-day moving average – a key support level – for the first time since March, Its failure ...

Shares in real estate companies fell on Friday, adding to a massive sell-off the previous day, when bond yields jumped to their highest levels in 16 years after the Federal Reserve signaled that U.S. interest rates would stay high for longer. The S&P 500 real estate index .SPLRCR lost 0.7% on Friday after falling 3.5% on Thursday, which was its biggest daily decline since March when the banking sector was in crisis. The U.S. Treasury 10-year yield US10YT=RR, fell slightly on Friday, after rising on Thursday to around 4.5%, its ...