Deutsche Bank strategists report renewed pressure on global equities as surging bond yields and higher Oil prices weigh on risk assets. The S&P 500 slipped for a third session despite a late recovery, while European indices saw broader declines. Sector performance was uneven, with utilities and materials lagging and mega-cap technology names providing some offset.
Higher rates weigh on global stocks
"In the US, equities did recover most of their decline following the Reuters story, but the S&P 500 (-0.02%) did still just about retreat for a third consecutive session."
"And the breadth of the moves was clearly negative, with almost two thirds of the S&P 500 lower on the day, led by declines for utilities (-1.02%) and materials (-1.01%)."
"However, an advance for the Mag-7 (+0.74%) limited the aggregate decline."
"Meanwhile Europe saw more consistent declines, as the STOXX 600 (-0.55%) fell back, alongside declines for the DAX (-0.57%) and the CAC 40 (-0.52%)."
"Asian equities are heavily affected by holiday-thinned trading, with markets in China and South Korea closed. Japan's Nikkei is trading 1.24% higher, while Australia's S&P/ASX 200 is down 0.53%."
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