Saturday, December 2, 2023

European shares sit pretty, govt bond yields edge off recent lows - Business Recorder

Last updated Friday, November 25, 2022 12:05 ET

LONDON: European stocks were on track for a sixth successive week of gains on Friday and government bond yields globally traded near multi-week lows as investors reacted to positive data and signs central banks may not hike rates as aggressively as feared.
The 10-year US Treasury yield dipped to 3.65% after the Thanksgiving holiday, its lowest since Oct. 5 and down from as high as 4.34% in mid October.
Germany’s 10-year yield, the euro zone benchmark, stood at 1.94%, up 9 basis points on the day, having hit a seven-week low the day before.
Europe’s STOXX 600 was little changed on Friday but heading for a 1.5% weekly gain, its sixth weekly percentage gain in succession, and the first such streak since October 2021 after taking a battering earlier this year “The correction had affected all major asset classes with the exception of the dollar and hard commodities and it’s now a big reversal of that,” said Olivier Marciot, head of investments, for multi-asset, at Unigestion.
“The pace of the (central bank) tightening cycle was unprecedented and created that shock, and now that specific factor is stabilizing it creates lift for all asset classes.”
The US Federal Reserve has raised interest rates aggressively throughout this year, but a “substantial majority” of Fed policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate rises, minutes of their latest meeting showed on Wednesday.
Expectations that the peak in rates is approaching were raised...

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