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Anonymous ID: 4dd33e March 26, 2019, 9:46 p.m. No.5917074   🗄️.is đź”—kun   >>7085 >>7379

Asian shares lose steam on U.S. recession fears; kiwi dives on RBNZ signal

 

TOKYO (Reuters) - Asian shares slipped on Wednesday, giving up small gains made the previous day as investors tried to come to terms with a sharp shift in U.S. bond markets and the implications for the world’s top economy.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 percent while Japan’s Nikkei average lost 0.6 percent.

 

Chinese stocks bucked the trend, with the benchmark Shanghai Composite rebounding 0.6 percent, the blue-chip CSI 300 climbing 1.1 percent, and Hong Kong’s Hang Seng advancing 0.5 percent.

 

Wall Street’s main indexes tallied solid gains on Tuesday but finished below their session highs in a reflection of the underlying concerns about the economic outlook.

 

The S&P 500 gained 0.72 percent while the Nasdaq Composite added 0.71 percent.

 

The 10-year U.S. Treasuries yield inched to as high as 2.432 percent from Monday’s 15-month low of 2.377 percent, though the yield curve remained inverted, with three-month bills yielding 2.461 percent, more than 10-year bonds.

 

The inversion spooked many investors as this phenomenon has preceded every U.S. recession over the past 50 years, triggering a dramatic selloff in stock markets globally late last week and a stampede into longer-dated U.S. government debt.

 

“While the markets now got out of the extreme nervousness about the U.S. yield curve, there is no denying that U.S. data has been soft of late, hardly dispelling worries about the outlook,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

 

The silver lining for stock bulls is that in the past, it has usually taken many months before the United States slipped into recession after the curve was first inverted.

 

Yet the signs from a raft of economic data, including a set of indicators on Tuesday, weren’t encouraging.

 

Home building fell more than expected in February as construction of single-family homes dropped to near a two-year low while the consumer confidence index by the Conference Board fell unexpectedly.

Home building fell more than expected in February as construction of single-family homes dropped to near a two-year low while the consumer confidence index by the Conference Board fell unexpectedly.

https://www.reuters.com/article/us-global-markets/asian-shares-lose-steam-on-u-s-recession-fears-kiwi-dives-on-rbnz-signal-idUSKCN1R803G?feedType=RSS&feedName=businessNews

 

Moar on Yield Curve

 

What is a Yield Curve

 

A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year, 10-year and 30-year U.S. Treasury debt. This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates, and it is used to predict changes in economic output and growth. Yield curve rates are usually available at the Treasury's interest rate web sites by 6:00 p.m.ET each trading day

https://www.investopedia.com/terms/y/yieldcurve.asp