Global stocks, debt yields slip on US CPI, poor bond auction | Malay Mail

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NEW YORK, July 14 ― Bond yields jumped and global share prices slipped after posting new highs yesterday as the biggest hike in US inflation in 13 years rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows. The yield on US Treasury...

NEW YORK, July 14 ― Bond yields jumped and global share prices slipped after posting new highs yesterday as the biggest hike in US inflation in 13 years rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows.

The inflation spike followed a 5.0 per cent increase in the 12 months through May, while CPI rose 0.9 per cent month over month after advancing 0.6 per cent in May, gains that unnerved investors. The jump in inflation ultimately is a negative hanging over a market that has enjoyed a remarkable rally since the lows of March 2020, said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.

On Wall Street, the Dow Jones Industrial Average fell 0.31 per cent to 34,888.79, the S&P 500 lost 0.35 per cent to 4,369.21 and the Nasdaq Composite dropped 0.38 per cent to 14,677.65. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 per cent, its best daily gain since late June, led by a 1.6 per cent rise in Hong Kong, where tech stocks rose broadly. Japan's Nikkei was up 0.5 per cent while Australian shares closed broadly flat.

Germany's 10-year bond yield was unchanged at -0.297 per cent, close to a three-month low of -0.344 per cent hit last week.

 

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