(Bloomberg) — U.S. stocks fell in early trade as rising U.S. Treasury yields weighed on sentiment as China’s coronavirus quarantine measures were tapered.
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The S&P 500 fell, with tech and consumer goods stocks lowering benchmarks. The Nasdaq 100 had the biggest loss among major benchmarks, dropping more than 1%. Tesla’s shares tumbled after reports of plans to temporarily halt production at its Chinese factories rekindled concerns over demand risks.
Yields on 10-year government bonds climbed 6 basis points as China moved to end its quarantine on inbound tourists, helping the dollar to cap its fall. New York oil prices are trading near $80 a barrel.
Investors are hoping for a year-end rally to mitigate the brutal runaway of risk assets. The S&P 500 is down nearly 20%, but Asian and global stocks are having their worst annual drop since 2008. Because the Federal Reserve has embarked on an aggressive fight against inflation. Bitcoin has fallen below $17,000 after starting above $47,000 in 2022.
“China has clearly demonstrated that the country is ready to take a giant leap when it comes to resuming economic activity so desperately needed by the global economy,” said Kunal Sawhney, Chief Executive Officer of Karkain Group. Still, “it may be a bit unreasonable to expect too much from stocks in the short to medium term, perhaps by mid-2023.”
Elsewhere in the market, prospects for demand from China pushed oil prices higher on Tuesday as the economy reopened, while cold weather prompted refinery closures across the United States.
Iron ore hit its highest level since early August. Gold traded above $1,800 an ounce as risk assets increased.
The London stock market is also closed on Tuesday.
This week’s main events:
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Bank of Japan December 19-20 (Wednesday) Meeting Opinion Summary
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First U.S. Unemployment Claims, Thursday
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ECB to issue economic bulletin on Thursday
Some of the major movements in the market:
stock
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The S&P 500 is down 0.6% as of 9:47 am New York time.
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The Nasdaq 100 fell 1.4%.
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Dow Jones Industrial Average down 0.2%
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The STOXX Europa 600 was up 0.2%.
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MSCI World Index down 0.3%
currency
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The Bloomberg Dollar Spot Index fell 0.1%.
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Euro barely changed at $1.0627
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British pound fell 0.3% to $1.2026
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Japanese yen fell 0.4% to 133.39 yen to the dollar
Cryptocurrency
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Bitcoin fell 0.4% to $16,759.25
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Ether falls 0.6% to $1,209.7
bond
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Yields on 10-year government bonds climbed 6 basis points to 3.81%
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German 10-year yield rose 11 basis points to 2.51%
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UK 10-year yields were little changed at 3.64%.
merchandise
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West Texas Intermediate crude rises 0.4% to $79.90 a barrel
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Gold futures rose 0.6% to $1,814.90 an ounce
This article was produced in partnership with Bloomberg Automation.
— With help from Youkyung Lee, Brett Miller, and Farah Elbahrawy.
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