Key Points
(Reuters) -U.S. Treasury yields were back near 5% on Thursday, reinforced by above-expectation U.S. GDP data, dragging shares around the world to multi-month lows in the middle of a busy corporate earnings week...
The U.S. economy grew at its fastest pace in nearly two years in the third quarter, Thursday data showed, as higher wages in a tight labor market helped to power consumer spending, again defying dire warnings of a recession that have lingered since 2022...
The unexpected strength of the U.S. economy has been a factor in the selloff in the U.S. Treasury market, and the benchmark 10-year yield last stood at 4.917%, down slightly on the day, having earlier reached 4.989%, just below 5.021%, the highest since 2007 hit earlier in the week..
Kiran Ganesh, global head of investment communications at UBS Wealth Management, said there were three main things pushing stocks lower.. High yields are reflecting concerns that rates will have to stay high for longer, and that wont be good for the economy longer term; high yields are also competing for equity market investment; and the start of the earnings season has been a mixed bag, but generally on the negative side.. European banks were the big earnings story on Wednesday, with Standard Chartered at one point falling more than 17% after the group announced its third quarter profit unexpectedly plunged by a third due to a nearly $1 billion combined hit from its exposure to Chinas real estate and banking sectors..
In currency markets, the dollar index hit a two-week high of 106.8, driven by the higher yields, and the yen weakened past 150 per dollar, a level that has put traders on guard for intervention to support the Japanese currency...
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