The outstanding performance for equities which sent many major indices to record highs may have just paused. Asian stocks were trading broadly lower on Thursday after the markets notched its first daily decline in 2018./ It was neither economic data nor earnings that prompted the declines, but rather the selloff in U.S. Treasuries which sent 10-year yields to a 10-month high.
At the time of this writing, the U.S. dollar was still down against most major currencies. The greenback fell on the back of an earlier report from Bloomberg – citing people familiar with the matter – that China is considering reducing or halting its purchase of U.S. government debt.
The dollar, U.S. bond prices and stock index futures all tumbled as safe-haven gold and yen jumped on the back of a report that China is considering reducing or halting its purchase of U.S. government debt.
Chinese data shrugged off as equity markets edge slightly lower; sterling under pressure as pressure on May mounts; central banks event sees Fed, ECB, BoJ and BoE heads join panel discussion; German GDP and inflation data get us off to an underwhelming start.
Investors remain in reflection mode as the quiet week continues; NZD edges higher as RBNZ acknowledges the inflationary impact of weaker currency; Chinese inflation beats expectations but remains below target; Brexit talks resume but is anyone optimistic at this point?