US futures are winning as global equities look to bond markets ahead of the 10-year auction

The market minute of Wednesday

• Global stocks attempted a modest rebound on Wednesday, but gains were modest as investors continued to closely monitor bond market developments in anticipation of a major 10-year note auction scheduled later today. in New York.
• Bond yields eased overnight, with 3-year paper trading at 3,225% and a rise in Italian bonds following some positive developments in the budget stalemate between Brussels and the government, but there was a slight rise in bond yields. IMF warning that global debt would hit a record $ 182 trillion last year worries some leverage risks.
• European stocks are weakening on luxury goods and technology shifts, while Asian markets have changed little in the face of current issues regarding the impact of the US-China trade war.
• US equity futures suggest a slight opening of gains, with the Dow anticipating a 35-point lead against a 2.2-point gain for the broad S & P 500.

Market overview

Global equities made a modest rebound on Wednesday, as US Treasury yields slowed before a key auction 10 years later during the session as investors around the world continue to play a key role in the markets. bondholders faced with questions about the pace of economic growth and the impact of the crisis. trade dispute still simmering between Washington and Beijing.

US futures are also considering minimal gains in opening due to overnight movements. Investors benefited from the fall in bond yields – also due to the positive evolution of the fiscal stalemate between Italy and the European Union – to test the markets despite the warnings of According to the International Monetary Fund, global growth is expected to slow next year and risks for the financial system will rise slowly, with trade tensions leading to a decline in emerging market equities and global debt reaching 182 trillion dollars. dollars last year, the highest level ever recorded.

The Asian markets, however, changed little during the night session, although the Nikkei 225 gained 0.16% in Tokyo, while the dollar remained high against a basket of peers and the yuan continued to grow. To move away, while China was at risk of using its currency. as a tool of retaliation in the ongoing trade dispute with the United States.

European equities, however, generally weakened, leading to a 0.3% decline in the Stoxx 600 benchmark here by mid-day in Frankfurt, while luxury goods companies recorded a sharp drop, following a Morgan Stanley research note questioning the pace of Chinese demand and technology stocks. investors took off leveraged positions in the sector due to the recent rise in bond yields.

The Italian benchmark FTSE MIB has recorded a 0.1% rise in mid-day in Milan, banks leading the ranking, after the Minister of Economy, Giovanni Tria, has said the budget deficit for 2019 would culminate at 22 billion euros ($ 25.3 billion), a figure still equivalent to 2.4%. expected growth in GDP but remains in line with market expectations. Italian benchmark 10-year yields, which peaked at 3.72% in 2014, declined to around 3.45% in European trading.

The early indications for Wall Street, however, were generally positive: contracts linked to the Dow Jones Industrial Average indicated a gain of 15 points to the opening bell, while those of the S & P 500 suggested a 2-point increase in benchmark wider.

The 10-year UST yield closed at 3.21% after its recent rise. Acc to @DallasFed President Robert Kaplan, the recent jump in US yields suggests "conflicting factors" (economic stimulus and decreasing fiscal stimulus), chart @csresearch pic.twitter.com/OzPVZDJuPE

– ACEMAXX ANALYTICS (@acemaxx) October 10, 2018

The yields on 10-year benchmark bonds changed little at the end of the European morning, to 3,225%. Investors are now waiting for the two auctions of $ 36 billion in new 3-year bonds and $ 23 billion in bonds 10 years later in the day. the session. The Treasury will follow sales of $ 230 this week with a 30-year bond auction worth $ 15 billion Thursday, just hours after the new inflation data for the September.

World oil prices have also been active as prices have fallen slightly, in part due to the IMF's bleak global growth assessment, which includes projected decommissioning of GDP for the United States and China. However, the imminent impact of Hurricane Michael, which is headed for the Gulf of Mexico, has provided support to the market as nearly 40% of Gulf production was closed yesterday, with 75 rigs being evacuated before the category 3 storm that is currently preparing. thousand per hour of wind.