Stocks rally fizzles, bond markets ponder risks for US economy | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
May 30, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, MAY 30, 2025
Stocks rally fizzles, bond markets ponder risks for US economy

Global Economy

Reuters
31 March, 2022, 09:00 am
Last modified: 31 March, 2022, 09:07 am

Related News

  • Al-Arafah Islami Bank will not pay dividend for 2024
  • Stocks, dollar rally as Trump tariffs hit court hurdle
  • DSEX drops 62 points, extends losing streak to six days
  • BSEC cancels GPH Ispat's rights share offer
  • DSE brokers' assoc call for listing CDBL on stock exchanges

Stocks rally fizzles, bond markets ponder risks for US economy

Reuters
31 March, 2022, 09:00 am
Last modified: 31 March, 2022, 09:07 am
A trader works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., March 7, 2022. REUTERS/Andrew Kelly
A trader works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., March 7, 2022. REUTERS/Andrew Kelly

Highlights:

  • Euro STOXX 600 falls 0.6%
  • US bond market signals economic pain ahead
  • Treasury 10-year yields lower
  • Ukraine-Russia negotiations earlier buoyed stocks
  • Wall Street down

The US and European equities rally wavered on Wednesday as investors reviewed economic and geopolitical risks, while oil prices jumped more than $2 on the prospect of more Russian sanctions.

The breather in stocks followed three to four straight days of gains that more than erased losses sustained when Russia invaded Ukraine five weeks ago, and came as bond investors wondered whether the US Federal Reserve's policy tightening could harm the world's biggest economy over the longer term.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

A key part of the US yield curve briefly inverted on Tuesday in what is widely viewed as a harbinger of a recession, although it has since reverted.

"We see further equity upside medium-term given a robust growth picture, low bar for first-quarter earnings, and narrowing credit spreads," analysts at JP Morgan's Global Markets Strategy said.

"We see too much negativity around the Fed since the start of Fed tightening cycles proved positive for equities historically, and policy is easing in Japan and China."

The Dow Jones Industrial Average (.DJI) ended down 0.19%, the S&P 500 (.SPX) fell 0.63%, and the Nasdaq Composite (.IXIC) shed 1.2%.

Europe's broad Euro STOXX 600 (.STOXX) lost 0.4%, while the MSCI world equity index (.MIWD00000PUS), which tracks shares in 50 countries, eased 0.32%.

The widely tracked yield curve showing the difference between two- and 10-year US Treasury yields bounced back to 4 basis points on Wednesday. It had briefly inverted to minus 0.03 of a basis point on Tuesday for the first time since September 2019.

Longer-dated yields falling below shorter ones indicate a lack of faith in future growth. A drop in 10-year yields below 2-year rates signals a recession.

Sebastien Galy, a senior macro strategist at Nordea Asset Management, said fixed income and equity markets are diverging in their outlooks and the split bears watching.

"Equity markets are overly optimistic and the fixed income markets are probably being overly pessimistic."

An inverted Treasury curve has in recent decades been followed by a recession within two years, including the 2020 downturn caused by the Covid-19 pandemic.

Benchmark indexes in Frankfurt (.GDAXI) and Paris (.FCHI) lost 1.5% and 0.74% respectively, while London shares (.FTSE) bucked the trend and jumped 0.55%.

A day after rising above 0% for the first time since 2014, Germany's two-year bond yield was up 6 basis points at 0.01% - keeping the previous day's highs in sight.

Shares rallied in Asia overnight after Ukraine proposed on Tuesday that it adopt neutral status, a sign of progress in face-to-face peace talks. read more

On the ground, attacks continued and Ukraine reacted with scepticism to Russia's promise in negotiations to scale down military operations around Kyiv.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) jumped 1.36% to its highest level in nearly a month, with most Asian stock markets in positive territory.

JAPAN IN FOCUS

The benchmark US 10-year yield was last at 2.3415% , after rising to 2.557% on Monday, its highest level since April 2019, as traders geared up for quick-fire US interest rate hikes.

Rising US yields have also lifted government bond yields in Japan, where inflation is running below target and where the central bank wants yields to stay low.

The Bank of Japan increased efforts to defend its key yield cap on Wednesday, offering to ramp up buying of government bonds across the curve, including unscheduled emergency market operations. read more

The widening gap between US and Japanese yields has caused the yen to weaken sharply, but it pared losses on Wednesday.

The Japanese currency rose 0.9% to 121.81 per dollar from Monday's low of 124.3, amid concerns Japanese authorities might step in to bolster the yen.

Elsewhere in currency markets, the euro rose 0.6% to $1.1156, its highest in four weeks, supported by the Russia-Ukraine peace talks.

In commodities, oil prices jumped more than $2 on supply tightness and the growing prospect of new Western sanctions against Russia even as Moscow and Kyiv held peace talks.

Brent crude futures were up $2.28, or 2.1%, at $112.51, while US crude rose 2.9% to $107.3 per barrel.

Spot gold added 0.8% to $1,935.38 an ounce.

Top News / World+Biz

Stock Market / Global Stock Market / share market / Global Share Market / stocks

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Deep depression over Bay of Bengal on 29 May. Photo: ANI
    Heavy rain, tidal surges trigger flood warnings as deep depression crosses coast
  • Powerful tidal surges from the Meghna River flooded more than 100 villages in four coastal upazilas of Lakshmipur on 29 May 2025. Photo: TBS
    Meghna tidal surge floods over 100 villages as incessant daylong rain batters Lakshmipur
  • Attackers vandalise the windows of the residence of Jatiyo Party (JaPa) Chairman GM Quader and set fire to a motorcycle in Rangpur on 29 May 2025. Photo: TBS
    Jatiyo Party chief GM Quader's Rangpur house attacked; NCP, SAD activists blamed

MOST VIEWED

  • Dhaka areas at a gridlock on Wednesday, 28 May 2025. Photo: Syed Zakir Hossain/TBS
    BNP, Jamaat rallies: Traffic clogs Dhaka roads, including Motijheel, Paltan, Dainik Bangla intersection
  • IFIC Bank receives Tk6,000 cr in new deposits in six months
    IFIC Bank receives Tk6,000 cr in new deposits in six months
  • Mohammad Abdul Mannan, chairman FSIB Ltd. Sketch: TBS
    FSIB to bounce back soon
  • Abdul Awal Mintoo, chairman of National Bank Limited. Sketch: TBS
    'Regulatory support must for National Bank to restore depositors' confidence'
  • Md Nazrul Islam Swapan, chairman of EXIM Bank. Sketch: TBS
    Exim Bank restored depositors’ confidence, overcoming challenges
  • Mohammad Mamdudur Rashid, managing director and CEO, UCB. Sketch: TBS
    Customers’ trust and confidence fueling deposit growth at UCB

Related News

  • Al-Arafah Islami Bank will not pay dividend for 2024
  • Stocks, dollar rally as Trump tariffs hit court hurdle
  • DSEX drops 62 points, extends losing streak to six days
  • BSEC cancels GPH Ispat's rights share offer
  • DSE brokers' assoc call for listing CDBL on stock exchanges

Features

For hundreds of small fishermen living near this delicate area, sustainable fishing is a necessity for their survival. Photo: Syed Zakir Hossain

World Ocean Day: Bangladesh’s ‘Silent Island’ provides a fisheries model for the future

8h | The Big Picture
The university will be OK. But will the US? Photo: Bloomberg

A weaker Harvard is a weaker America

9h | Panorama
The Botanical Garden is a refuge for plant species, both native and exotic. Photo: Mehedi Hasan/TBS

The hidden cost of 'development' in the Botanical Garden

9h | Panorama
Stillbirths in Bangladesh: A preventable public health emergency

Stillbirths in Bangladesh: A preventable public health emergency

9h | Panorama

More Videos from TBS

Record migrant deaths in 2024

Record migrant deaths in 2024

5h | Podcast
News of The Day, 29 MAY 2025

News of The Day, 29 MAY 2025

7h | TBS News of the day
Businesses set for relief as interim govt eyes major tax & fine cuts

Businesses set for relief as interim govt eyes major tax & fine cuts

10h | TBS Insight
Love is essential for human life

Love is essential for human life

10h | TBS Programs
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net