• Government bond yields rise
• Gold prices drop
• European stocks down, Asia mixed
Global stocks slipped as investors moderated their expectations about how much central banks are likely to cut interest rates in the coming days.
European stocks ticked down, with the Stoxx Europe 600 falling 0.5% in opening trade, with losses across most regional indexes. The German DAX and France’s CAC 40 both fell 0.3%.
Asian markets were muted Tuesday, with the Shanghai Composite down 0.1% and Japan’s Nikkei 225 up 0.3%. Hong Kong’s Hang Seng was up 0.1%.
Analysts expect the European Central Bank will cut 10 basis points from benchmark interest rates when it meets on Thursday. The Federal Reserve will meet next week, and is broadly expected to lower rates by 25 basis points.
“It looks like there is a feeling that the bond prices went too high and the gold markets went too high and it’s time for a correction,” said Ipek Ozkardeskaya, a senior analyst at London Capital Group. “They will probably come back when the dust settles but for now, volatility is too high.”
The yield on the 10-year Treasury edged up slightly to 1.634% Tuesday, from 1.632% Monday. In European bonds, the yield on the 10-year German bund rose to minus 0.573% from minus 0.585% Tuesday. Bond yields and prices move in opposite directions.
In commodities, Brent crude oil was up 0.1% at $62.64 a barrel. Oil investors were eyeing a possible initial public offering by Saudi Arabia’s state-run oil company Aramco, known officially as Saudi Arabian Oil Co. Aramco’s chief executive on Tuesday said the company is ready for a listing whenever shareholders decide.
Traditional haven metal gold fell 0.6%.
Later today, the U.S. Labor Department will release its July report on job openings and labor turnover. In June, there were 7.35 million unfilled jobs. Should that number remain high, it would indicate that the recent hiring slowdown is more a result of worker scarcity than companies being cautious.
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