Written by Lawrence Delevin and Elon John
(Reuters) -Global shares fell and collided with the long bond returns in Europe on Tuesday, as investors are increasingly concerned about the state of financial affairs in countries around the world, while the dollar gained, and gold met a new record.
On Friday, the US Appeals Court ruled that most of the tariffs of President Donald Trump are illegal, although the court allowed definitions to remain in place until October 14, pending a possible appeal for the Supreme Court.
The United States was contracted for the sixth consecutive month in August, when factories struggle with the impact of import tariffs, but the boom of artificial intelligence spends support for some sectors of the industry.
Less American stocks were traded, with a medium Jones Industrial decrease by 0.55 %, S&P 500 off about 0.7 % and NASDAQ compound by 0.8 %.
“The global bond markets have started this month with a tense look on the government’s budget discussions in the United States and Europe,” Paul Christopher, head of the Global Investment Strategy at the Wales Fargo Institute for Investment. “The cumulative increase in returns has caught the attention of stock investors.”
When the markets suffered from a sharp shock in September, the Japanese yen also fell after a close assistant to Prime Minister Shigro Ishiba that he would resign from his position.
The revenue of government bonds that lasted 30 years in France has reached the highest level in more than 16 years on Tuesday, about 4.5 %, while the return on German bonds for 30 years reached the highest level in 14 years at about 3.4 %. In the United Kingdom, a 30 -year -old diet has achieved its highest mark since 1998, as investors seemed to be cautiously with the autumn budget plans for the government.
The revenues of bonds are transferred to prices, and the revenue, especially in 30 -year bonds, exceed 30 years of bonds around the world, as investors are interested in debt size in countries from Japan to the United States.
“The pain of pain in the bond markets that was implemented smoothly from August to September,” said Kenneth Brooks, president of FX Research and rates at Societe Generalle.
“The new primary version wave that awaits investors in the coming days and weeks threatens to exacerbate the global sale in the long end.”
The return in the United States also increased for 30 years by 5.1 basis points by 4.96 %, while treasury revenues increased for 10 years by 4.5 bits per second to 4.27 %.
Britain and France in particular focus.
It seems that French Prime Minister Francois Bayro will lose a vote on confidence as the opposition parties abandon his discounts on government spending, while British Finance Minister Rachel Reeves is expected to raise taxes in their autumn budget to match their financial goals.
https://media.zenfs.com/en/reuters-finance.com/4b8c41773615bc39b748ae4ea6633f84
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