US Treasury yields rise as investors watch economic data
US Treasury yields were higher Market participants are awaiting a fresh batch of economic data and Treasury auctions after Monday’s Labor Day holiday.
Return on standard 10-year treasury bonds It rose more than 7 basis points to 3.265% at about 3:40 a.m. ET, while the yield on 30 year treasury bonds It gained 6 basis points to 3.408%.
The two-year Treasury yield jumped nearly 7 basis points to trade at 3.466%.
– Sam Meredith
German industrial orders fell 1.1% in the month
Data from the Federal Statistical Office showed on Tuesday that German industrial orders fell 1.1% in July, missing expectations for a 0.5% contraction in a Reuters poll of analysts.
The decline marks the sixth straight month of contraction as the war in Ukraine continues to pressure activity in Europe’s largest economy, with rising costs and material shortages hampering the industry.
– Elliot Smith
Stocks on the go: D’Ieteren up 9%, Marks and Spencer up 7%
Shares of a Belgian car distribution company D’Ieteren Group It jumped more than 9% in early trading to lead the Stoxx 600 after reporting strong first-half earnings, while the British retailer Marks and Spencer It added 7.5% to lead a broad advance for retail stocks.
– Elliot Smith
Sterling jumps on reports of new British Prime Minister’s energy bill plans
Sterling pound It rose 0.6% against the dollar in early trading on Tuesday after Bloomberg reported that incoming British Prime Minister Liz Truss has drawn up plans to freeze energy bills for UK households, in an effort to mitigate the The rising cost of living in the country.
The pound was trading around $1.158 shortly after 8am in London, after dropping below $1.15 on Monday.
The report, published overnight, indicated that Truss plans to fix prices for gas and household electricity at their current level of £1,971 (US$2,300) a year. British energy regulator Ofgem recently announced an 80% increase in the country’s energy price cap from 1 October, which will raise the cap to £3,548 a year.
– Elliot Smith
The Reserve Bank of Australia expects to raise interest rates again for the fifth time in a row
The Reserve Bank of Australia is expected to raise interest rates by another 0.5 percentage point on Tuesday on the back of a “full-employment labor market, hyperinflation overrun and the fact that financial conditions remain very favorable,” Goldman Sachs chief economist for Australia and New Zealand Andrew Book said.
Bock stated that markets do not expect the central bank to soften its stance on curbing inflation when it announces its interest rate decision at 2:30 PM EAS.
“I think markets will be particularly sensitive to any kind of indication that the RBA is considering stepping back from the pace of tightening to say 25 basis point increases,” Bok said.
“I think the main language will be retained about expecting more tightening over the coming months. But also the warning that policy is not on a predetermined path.”
There are risks with continued rate hikes such as “unregulated relaxation in the housing market” but Bock says “that is not our central scenario”.
– So Lin Tan
CNBC Pro: Forget the fluctuations. Analyst says this ETF purchase is a long-term growth story
Investors should navigate the constant market volatility by getting into ETFs with a long-term growth story, according to one portfolio manager.
“The idea of owning an ETF instead of one specific player — having a whole basket and riding the wave of more capital investment in cyberspace,” John Petrides, portfolio manager at Tocqueville Asset Management, told CNBC.
He named his favorite ETF for cybersecurity, along with two others.
CNBC Pro subscribers can read more here.
– Weezin Tan
Russia’s energy minister said the price cap would lead to more Russian oil being shipped to Asia
A worker walks from a Sans Vitesse residence toward a gas receiving compressor station for the Nord Stream 1 natural gas pipeline in Lubmin, Germany, on Tuesday, August 30, 2022.
Christian Boxey | Bloomberg | Getty Images
Russian Energy Minister Nikolai Shulginov said his country will ship more oil to Asia in response to restrictions on the prices of its oil exports, Reuters reported.
“Any measures to impose a price ceiling will lead to market deficits (for start-up countries) and increase price volatility,” he told reporters at the Eastern Economic Forum in Vladivostok.
Last week, the Group of Seven economic powers agreed to set the price of Russian crude to punish Moscow for its unprovoked invasion of Ukraine. Before the invasion, Russia exported nearly half of its exports of crude oil and petroleum products to Europe, according to the International Energy Agency.
– Natalie Tham
CNBC Pro: Keep the cash because it outperforms the market, say the pros
Strategists are urging investors to allocate more of their portfolios to cash during these volatile times, as higher interest rates mean they are now offering higher returns.
“Cash was king,” Bank of America said in a note on Sept. 1 last month, as most asset classes — such as stocks, bonds and even commodities — posted losses.
Here’s how to add it to your portfolio, according to the pros.
CNBC Pro subscribers can read more here.
– Weezin Tan
European markets: here are the opening calls
European shares are expected to open cautiously higher on Wednesday, along with British stocks FTSE The index saw 18 points higher at 7,560, Germany Dax 33 points higher at 13944, France CAC 40 It rose 18 points to 6616 and Italy FTSE MIB It rose 42 points at 23,029, according to data from IG.
Data releases include Eurozone preliminary unemployment data for the second quarter as well as the GDP for the second quarter. The latest UK inflation figures for July will be released as well as preliminary Dutch GDP for the second quarter.
Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.
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