NEW YORK, April 9 ― A global equity index rose slightly yesterday while Wall Street stocks were muted as US bond yields hit their highest levels since late November and investor optimism about the outlook for Federal Reserve interest rate cuts waned.
Also, a much stronger-than-expected US jobs report on Friday after solid manufacturing data caused investors to temper bets on a Federal Reserve rate cut in June. “There's elevated anxiety going into the start of earnings season for those in the bullish camp. We need to see some decent prints and raised guidance,” said James.
Along with earnings, investor focus this week was also on the US consumer price index report due out on Wednesday. US Treasury yields moved higher yesterday as fixed income investors lowered their expectations for how deeply the Fed will be able to cut interest rates this year after the jobs report. In currencies, the dollar index fell 0.2 per cent at 104.15, with the euro up 0.2 per cent at US$1.0857. Against the Japanese yen, the dollar strengthened 0.16 per cent at 151.85.