May 30, 2019 - Economy
Stocks and bond yields hit lows around the globe on Wednesday
Add Axios as your preferred source to
see more of our stories on Google.
There was more blood on Wall Street Wednesday. Stocks and other risky assets fell while traders piled into safe-haven bonds.
The state of play: The S&P 500 fell to its lowest since March 11 with the Dow hitting its lowest since Feb. 11 and the Russell 2000 closing at its lowest since Jan. 30.
- The Stoxx Europe 600 Index fell 1.4% to the lowest since Feb. 21.
- The MSCI All-Country World Index declined 1.1%, the lowest since February.
- The yield on 10-year Treasuries touched the lowest since September 2016.
- Germany's 10-year government bond yields hit their lowest in about 3 years.
- Benchmark 10-year yields on Japanese government bonds fell to the lowest in almost 3 years and had the largest decrease in almost 6 weeks.
What they're saying: "The 2019 rally has been driven by 1) A dovish pivot by the Fed (no more hikes), 2) An expected U.S.-China trade deal, 3) Stable U.S. and global economic growth and 4) Better-than-feared earnings. Three of those four factors got significantly worse last week," said market analyst Tom Essaye in his Sevens Report newsletter.
- "The 2019 rally can likely survive the loss of any one factor (which is why the breakdown in U.S.-China trade hasn’t caused a deeper correction), but it likely cannot withstand the loss of any two factors. Right now, we have three of the four teetering."
