The stock exchanges are trying to rebound, after a black April and waiting for the Federal Reserve to decide a substantial rate hike of 50 basis points tomorrow, but the markets are uncertain and volatile. T-Bond yields continue to rise to record levels. The 10-year Treasury rate is at 2.99%, having surged to 3.01% yesterday, the highest since December 2018. The 2-year is at 2.73% and the 30-year at 3.03%.
In Asia Tokyo and Shanghai remain closed for holidays, while Hong Kong rises slightly and Seoul is flat. Avanzano i future a Wall Street which yesterday closed a very volatile session positively, with the indices losing up to 1% before recovering some ground at the end.
The market remains dominant Federal Reserve starting its meeting today and tomorrow she is waiting at the gate to understand, from the words of her boss, Jerome Powell, the extent and speed of future increases in the cost of money and the shrinking of her maxi-budget.
This explains the nervousness of Wall Street, which yesterday saw the S&P 500 drop to lows since May 2021 and the Nasdaq plummet to levels not seen since November 2020, before recovering, thanks to Meta, which rose another 5, 32%, while Apple gained only 0.2% and Amazon continued to lose ground, dropping a further 0.18%, after losing 14% last Friday.
Futures on the EuroStoxx 50 are up after yesterday the European stock exchanges closed sharply, worried about the war in Ukraine, the price rush, the monetary tightening and the lockdowns in China.