By Tom Arnold
LONDON (Reuters) – The sell-off of global stock markets on Wednesday extended to its longest losing streak in two months, as rising commodity prices and mounting inflationary pressure in the United States fueled bets on rate hikes. higher interest and bond yields.
* A slight recovery emerged in the European stock markets, with a 0.3% improvement in the regional STOXX 600 index after the crash the day before.
* MSCI’s broader measure of Asia-Pacific equities excluding Japan lost 0.8%, after hitting its lowest since March 26. Japan’s Nikkei index reversed initial gains and lost 1.9%, while the Taiwanese benchmark fell 6% from all-time highs to levels seen in February.
* After hitting new record highs earlier in the week, MSCI’s measure of global stocks was down 0.2%, its third consecutive day of losses and its longest streak since March 4.
* Investors’ attention is focused on the US consumer price index report at 1230 GMT. Analysts expect a 3.6% rise in year-on-year prices, driven by last April’s low base.
* The yield on US Treasuries was in a narrow range. The 10-year benchmark return fell to 1.6183%, below the recent peaks of late March and far from the 1.9% level of early 2020, before the coronavirus pandemic.
* S&P 500 E-mini futures fell 0.4%, while tech-heavy Nasdaq futures fell 0.6%. Still, analysts doubt the broad sell-off of stocks will extend much further in a world with expansive policies and fiscal largesse.
* The dollar hovered around two-and-a-half-month lows against a basket of six leading currencies, as traders clung to bets that the Federal Reserve will continue its lax policy ahead of the release of consumer price data in the United States. .
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* The dollar index was trading at 90,291 units. Currencies of large providers of natural resources such as Canada have shown strong increases in an environment of high prices of raw materials.
* As of 1212 GMT, crude prices were up more than 1%, while spot gold was down 0.2% to $ 1,833 an ounce.
* In cryptocurrencies, ether hit a new record and was trading at $ 4,261.08. The value of the second largest digital token has climbed more than 5.5 times so far this year.
GRAPH: Stock Exchanges in Asia https://tmsnrt.rs/2zpUAr4
GRAPHIC: Valuations in Asia-Pacific https://tmsnrt.rs/2Dr2BQA
GRAPH: Inflation in the US https://tmsnrt.rs/3tF1WzY
Exchange rates in the world http://tmsnrt.rs/2hzquG7
Asset performance in the year http://tmsnrt.rs/2szi3CI
Ether hits record high, taking 2021 profit to nearly 500%
(Reporting by Tom Arnold in London and Swati Pandey in Sydney; additional reporting by Sujata Rao; edited in Spanish by Carlos Serrano)