Equity markets shed loss on Tuesday due to spike in global bond yields as traders weighs in removal of central bank’s support to combat inflation.
The yield on the 10-year U.S. benchmark rose as high as 1.86% in the overnight session. The two-year benchmark yield, which is more sensitive to expectations for short-term interest rates, also broke above 1% for the first time in two years. Both two years and ten year yield at a level last seem before pandemic.
The SET, KOSPI, TOPIX and HSI inched down by 0.99%, 0.89%, 0.42% and 0.43% respectively.
MSCI Asia broad market index excluding Japan inched down by 0.27%.
U.S. futures opened in the red with S&P 500 down by 1.12%, Dow Jones down by 0.72% and Nasdaq most hit down by 1.77%.
Prices of crude oil benchmarks climbed to their highest level since 2014 on Tuesday amid concerns of possible supply disruption after attacks in the Mideast Gulf.
Brent crude oil futures rose 1.34% to $87.61 a barrel while U.S. West Texas Intermediate (WTI) futures jumped to $85.34 a barrel up by 1.83%.
Supply concerns escalated after Yemen’s Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.
