Wall Street stocks in the United States (US) ended lower while stocks in Europe recovered from a 5-week straight decline and European bond yields soared amid monetary policy speculation.
Moreover, the market was also seen in a cautious sentiment on the rise in the European and US zones as the European Central Bank (ECB) was heard using a hawkish tone in addition to the US jobs data report which recorded a strengthening than expected.
Major Wall Street stock indices were seen mixed during the session before closing ‘red’ as the market tried to process quarterly results from Amazon.com Inc and Facebook giants Meta Platform Inc.
The Dow Jones Industrial average index remained at 35,091.13 points while the S & P500 lost 0.37% at 4,483.87 and the Nasdaq Composite was down 0.58% at 14,015.67.
Meanwhile, Meta shares continued to post losses for 3 consecutive sessions with a decline of more than 5% while Peloton shares jumped 20% following media reports that Amazon was interested in buying it.
JP Morgan analysts think the current situation with the market’s inability to rise on strong earnings data as well as the stock’s weak Q4 results reflect market sentiment in a bearish mode.
Meanwhile, stocks in Europe extended gains in gains in mining stocks and positive earnings that offset concerns about impending policy tightening and geopolitical tensions.
The pan-European STOXX 600 rose 0.7% after declining more than 5% this year on a sharp drop in technology stocks due to inflationary pressures while mining stocks jumped 1.7% after positive comments from major Chinese commodity importers raised metal prices.
Britain’s FTSE was up 0.76% and the MSCI world equities index was at 0.4%.
Eurozone bond yields rose with German 10 -year government bond yields up 2 basis points at 0.22%, the highest level since January 2019.
U.S. 10 -year treasury yields retreated from a surge on Friday following strong U.S. data while U.S. 2 -year treasury yields moved following expectations of lower interest rates.
The dollar index rose while the Euro fell 0.1%.
Oil prices fell from a 7 -year high with Brent crude oil prices falling 58 cents or 0.6% at $ 92.69 and U.S. crude oil prices falling 1.3% or 99 cents at $ 91.32.
The spot price of gold was up 0.73% and US gold futures were up 0.8% at $ 1,821.80.
