Stocks tumble, US yields rise ahead of central bank rush

Stocks tumble, US yields rise ahead of central bank rush
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  • Fed raises 25 basis points, ECB and BOE by 50 basis points
  • Megacap stocks lead earnings results this week
  • MSCI index heading for biggest January percentage gain since 2019

NEW YORK, Jan 30 (Reuters) – Global stocks slumped on Monday after gaining in six sessions, while yields on US ten-year Treasuries rose for a third day ahead of central bank policy announcements and data that could shine a light. On whether progress has been made in reducing inflation.

Investors expect the Federal Reserve to raise rates by 25 basis points (bps) on Wednesday, with the Bank of England and the European Central Bank (ECB) statements on Thursday. Both are expected to increase substantially by 50 basis points.

Brian said, “This is a week where we’ll likely have a year of surprises. Jacobsen is senior investment strategist at Allspring Global Investments in Menomonee Falls, Wisconsin.

“(Fed) would have preferred to sound very hawkish but it’s cheap to talk – right now they’re at the walking cycle point where what really matters is what the data say and what the Fed offers.”

Dow Jones Industrial Average (.DJI) The S&P 500 was down 89.41 points, or 0.26%, to 33,888.67. (.SPX) The Nasdaq Composite lost 36.23 points, or 0.89%, to 4,034.33. (.IXIC) It fell 200.13 points, or 1.72%, to 11,421.58.

Ratio expected increase January 31-February at the Federal Open Market Committee. 1 meeting brings the policy rate to the range of 4.5%-4.75%. That’s two quarter points below what most Fed policymakers thought would be “restrictive enough” to contain inflation in December. However, futures currently expect rates to peak at around 4.9% in June before retreating to 4.5% by the end of the year.

Markets will also grapple with a slew of US economic data that culminated in Friday’s January payroll report. Investors see signs of labor market weakness as a key factor in curbing high inflation. Other data included indicators for the manufacturing and services sectors.

The US corporate earnings season is also in high gear, with earnings from Apple peers expected this week. (AAPL.O)alphabet (GOOGL.O) and Amazon (AMZN.O). According to Refinitiv data, earnings of S&P 500 companies are expected to decline 3% for the quarter, below the 1.6% decline seen at the beginning of the year.

stocks in europe also lowerprimarily with velocity-sensitive names, such as technology shares among rejecters.

Pan-European STOXX 600 index (.STOXX) 0.30% and MSCI’s worldwide stock benchmark lost (.MIWD00000PUS) 0.68% drop. The MSCI index is on track to post its biggest percentage gain since 2019 in January, while the STOXX 600 is poised for its biggest January percentage gain since 2015.

US Treasury bond yields rose ahead of central bank meetings and economic data, and the 10-year yield rose for the third consecutive year. Benchmark 10-year bonds rose 2.4 basis points to 3,542 percent from 3,518 percent late Friday.

The dollar, which is preparing to enter its fourth month with decreases, with the increasing expectations that the Fed is approaching the end of the interest rate increase cycle, a little bit up.

The dollar index rose 0.098%, while the euro rose 0.08% to $1.0876.

The Japanese yen fell 0.34% against the dollar to 130.31 per dollar, while the pound was last trading at $1.2379, down 0.15% on the day.

raw prices Expected hikes by central banks and strong Russian exports overcame the signals.

US crude was down 1.13% at $78.78 a barrel and Brent crude was down 1.05% at $85.75.

Reporting, Chuck Mikolajczak Editing, Bernadette Baum

Our standards: Thomson Reuters Trust Principles.

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