- U.S. stocks fell, weighed down by rising U.S. Treasury yields and geopolitical concerns
- European stock markets were mixed, with government bonds falling
- Asian stocks reported lower amid concerns about U.S. interest rates and geopolitical developments
U.S. stocks fell, weighed down by rising U.S. Treasury yields and geopolitical concerns
U.S. stocks fell on Monday, weighed down by rising U.S. Treasury yields and growing concerns about geopolitical tensions in the Middle East, and the earnings quarter continued. The S&P 500 fell 1.2%, while the tech-heavy Nasdaq fell more (-1.8%).
U.S. Treasuries reported lower (higher yields) and the yield curve steepened as investors assessed positive retail sales data and weighed geopolitical risks and Fed officials' comments on the outlook for U.S. interest rates. The yield on the 10-year Treasury rose 8 basis points to 4.60%.
European stocks had mixed performances on Monday as investors digested the uncertain geopolitical environment and the release of U.S. earnings. The Dow Jones Europe 50 rose 0.6%, Germany's DAX and France's CAC rose 0.5% and 0.4%, respectively. Britain's FTSE 100 index fell 0.4%.
European government bonds fell on Monday (yields rose), weighed down by reduced safe-haven flows and higher-than-expected U.S. retail sales. The German 10-year government bond yield rose 8 basis points to 2.44%, while the French 10-year government bond yield rose 10 basis points to 2.96%, adding to fiscal concerns. The yield on 10-year UK government bonds rose 10 basis points to 4.24% on important labor market and inflation data.
Asian stocks fell on Monday, weighed down by heightened geopolitical concerns and ongoing concerns about the outlook for U.S. interest rates. Japan's Nikkei 225 and Hong Kong's Hang Seng both fell 0.7%, while other regional markets also tumbled. India's Sensex index fell 1.1%. China's domestic stock market moved differently from the region, with the Shanghai Composite Index rising 1.3%. China issued guidance on Friday to strengthen capital market regulation and risk prevention, hoping to improve investor protection, shareholder returns and restore market confidence.
Oil prices fluctuated on Monday and closed slightly lower as investors focused on geopolitical developments in the Middle East. U.S. oil prices fell 0.3% to $85.4 in May.
Key data announcements and market events
yesterday
U.S. retail sales rose 0.7% (month-on-month) in March, higher than market expectations. The January-February data was revised upwards to reflect solid growth in the first quarter of 2024.
Economic data released today (16 April 2024)
China's GDP is expected to rise by 1.5% (QoQ) in Q1 and 1.0% QoQ in Q4 2023. Retail sales should remain solid in March after rising 5.5% y/y in January-February, while industrial production is forecast to remain steady in March after rising 7.0% y/y in January-February.
The UK's ILO unemployment rate for the three months to February should edge up to 4.0% from 3.9% in the three months ended January, with overall average earnings slowing.
U.S. housing starts should fall back in February after surging 10.7% (month-on-month) in January due to weather.
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