Global equities have been mixed among U.S. inflation concerns; The Treasury has risen to Reuters

Author: Katanga Johnson

WASHINGTON (Reuters) – World stock market indices fell from record highs on Tuesday as a sharp rise in producer prices over the past month raised concerns about inflation, while U.S. Treasury yields fell.

After the U.S. Department of Labor said producer prices rose sharply in October, many investors bought government-backed debt obligations. The data indicated high inflation, which has become a greater concern for investors than the COVID-19 crisis, as supply remains tight.

The European index lost 0.11%, and MSCI’s worldwide stock gauge fell 0.28% after reaching less than a point above the unseen highs at the start of the session.

Global initiatives were at an all-time high as investors measured strong gains, easing travel restrictions and spending on U.S. infrastructure against the risk of inflation, which could lead to tightening monetary policy.

“Markets have grown rapidly and strongly, there has been a strong rebound, but the catalyst provided by the third quarter earnings season is coming to an end,” said Emmanuel Cauk, head of European capital strategy. Barclays (LON :).

Cau noted that the market positioning was far from extreme and that many investors remained cautious despite the imminent threat to the rally.

He argued that it was “healthy” for the market to break because companies were in no hurry to digest corporate profits and raise interest rates.

Fears of a sudden tightening of monetary policy led to the sale of fixed income in October, but government bond yields have fallen since then.

“The central bank supports a risk-averse stance against early tightening,” JP Morgan analysts told clients in a note.

It fell by 0.56% and lost by 0.43%. It fell by 0.46%.

The reference benchmark fell by 5.1 points at noon to 1.4462%. 10-year Treasury Inflation Protected Securities Yield was -1.159%, the lowest since the beginning of August, indicating rising inflation concerns.

The German 10-year inflation bond, which reflects so-called real yields, fell to a low of -2.09%.

Both US and eurozone benchmark yields are trading near one-month lows.

Market analysts were waiting for US consumer price data on Wednesday. A stronger-than-expected reading would speak to the Federal Reserve raising interest rates earlier than expected.

The dollar shook after US producer price data on Tuesday, but rose 0.081% in the last quarter, while the euro fell 0.11% to $ 1.1573.

The Japanese yen strengthened 0.23% to 112.98 per dollar, while the sterling weakened 0.24% to $ 1.3529.

Among cryptocurrencies, it fell by 1.23%.

Oil prices rose slightly as approvals for the U.S. infrastructure bill and growth in Chinese exports helped forecast energy demand.

Producer Aramco (SE 🙂 of the State of Saudi Arabia also raised its official gross selling price.

It rose 0.98% to $ 82.73 per barrel, and rose 0.43% to $ 83.79.

Gold prices fell from their highs in early September as the dollar strengthened slightly ahead of U.S. inflation data that would come out later in the week.

It fell 0.1% to $ 1,822.30 per ounce, ET at 10:17 a.m. (1517 GMT), after hitting a high of $ 1,830.35 since Sept. 3.