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Global market update: APAC indices retreat as yields spike

EditorOliver Gray
Published 29/05/2024, 11:21 am
© Reuters. - APAC markets were trading in negative territory on Wednesday, after US shares showed mixed performance overnight as bond yields increased due to unsatisfactory results from two bond auctions and the release of economic data.

By 11:30 am AEST (1:30 am GMT) S&P/ASX 200, KOSPI 200 and Nikkei 225 were down by 0.9%, 0.8% and 0.2%, respectively.

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On Wall Street, the Dow Jones Industrial Average fell by 0.6%, while the S&P 500 remained unchanged, and the NASDAQ Composite rose by 0.6% to a record closing high. European share markets experienced broad-based declines, with the FTSEurofirst 300 index falling by 0.6% and the UK FTSE 100 index shedding 0.8%.

In terms of economic data, the US FHFA house price index rose by a smaller-than-expected 0.1% in March, while the Conference Board consumer confidence index increased from 97.5 in April to 102 in May.

The US government bond yields rose following two lukewarm debt auctions, leaving dealers with more paper than recent sales. The US 10-year Treasury yield rose by 7 points to 4.54%, and the 2-year Treasury yields increased by 3 points to 4.98%.

In currency markets, the Euro and the Aussie dollar weakened against the US dollar. The Aussie dollar dipped to US66.50 cents at the US close.

Global oil prices climbed due to escalating tensions in the Middle East, with a vessel attacked in the Red Sea and reports of Israeli tanks reaching the center of Rafah. Consequently, the Brent crude price rose by 1.3% to $US84.22 a barrel.

Looking ahead, Australia is set to release its monthly consumer price index (CPI), which is expected to remain at 3.5% per year.

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