Global stocks fall, US yields climb as central bank hikes awaited

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NEW YORK, Jan 31 — A gauge of global stocks retreated yesterday after six sessions of gains while US Treasury yields rose ahead of central bank policy announcements and data that...

NEW YORK, Jan 31 — A gauge of global stocks retreated yesterday after six sessions of gains while US Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation.

On Wall Street, US stocks slumped, with 10 of the 11 S&P sectors closing lower, while Johnson & Johnson lost 3.70 per cent after a US court rejected the company’s plan to offload into bankruptcy tens of thousands of lawsuits over its talc products. Markets will also grapple with a host of US economic data, culminating in Friday’s payrolls report for January. Investors see signs of weakening in the labour market as a key factor in bringing down high inflation. Other data included gauges of the manufacturing and services sectors.

The pan-European STOXX 600 index lost 0.17 per cent and MSCI’s gauge of stocks across the globe shed 0.99 per cent. MSCI’s index was on track for its biggest January percentage gain since 2019 while the STOXX 600 was poised for its largest January percentage gain since 2015.

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