Stocks pause for breath as bond selloff extends

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Stocks took a breather on Tuesday, easing from record highs as political turmoil in Washington and rising coronavirus cases gave pause, though a selloff in U.S. Treasuries extended as investors reckon on a big spending government.

FILE PHOTO: Pedestrians wearing facial masks are reflected on an electric board showing stock prices outside a brokerage at a business district in Tokyo, Japan January 30, 2020. REUTERS/Kim Kyung-Hoon

Drugmakers lifted Japan’s Nikkei to a fresh three-decade high after reports of another effective COVID-19 treatment, though the index eased to be 0.16% lower in the afternoon. [.T]S&P 500 futures were 0.05% weaker and London’s FTSE futures were 0.13% lower in Asia on Tuesday. “I don’t think higher interest rates or inflation expectations are being an area of concern for equities at the moment.”

The U.S. yield curve is steepening because investors expect a big-spending, big-borrowing United States government after Democrats last week won control of both houses of Congress.

 

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