Today's Edition
SINGAPORE (REUTERS)
Stocks made muted gains on Tuesday and both cryptocurrencies and global government bonds stabilised after the previous day's sell-off triggered by a looming interest rate hike in Japan.
S&P 500 futures were steady after falls on Wall Street overnight, while stocks in Europe and Asia nudged higher.
A bit more calm in the Japanese government bond market after a strong auction of JGBs was helping the mood, and Japanese 10-year and 30-year yields were each about one basis point lower.
Bond yields move inversely to prices, and a weeks-long tumble in JGBs on concerns about the nation's finances and expected rate hikes from the Bank of Japan has sent 10-year yields to a 17-year peak and 30-year yields to an all-time high.
That sell-off had weighed on bonds elsewhere in the world on Monday - the 10-year US Treasury yield rose nearly 8 bps and the 10-year German Bund yield rose nearly 6 bps - and also sent stock markets lower.
Bitcoin Down
On Tuesday, global bonds again took their cue from JGBs, but this time echoed their calm - the 10-year Treasury yield was at 4.09% and the 10-year Bund yield was at 2.75%, both flat on the day.
Bitcoin, which some see as a possible leading indicator for risk assets, inched higher on Tuesday after an unsettling 5.2% slump on Monday and at $87,000 is down 30% from an October peak.
Currency Markets
In currency markets the Japanese yen softened slightly on Tuesday, with the dollar up 0.35% at 156.0 yen, and the euro up a similar amount.
However, as that came after a decent bid for the yen on Monday, traders are less concerned than they were last week that the Bank of Japan would step in to prop up the currency.
The dollar was also steady more broadly on Tuesday, after its softness on Monday helped hoist the euro briefly above $1.165. The common currency last traded at $1.1605.
Some investors, however, are starting to expect a more durable turn lower for the greenback as the US prepares to cut interest rates further and faster than many peers.
Data on Monday supported expectations for a December rate cut by the Federal Reserve, with manufacturing contracting for a ninth straight month in November - though consumers did beat analyst expectations with a $23.6 billion online shopping spree to kick off the holiday season.
Gold retreated 1%, dipping back below $4,200 an ounce, but is still only around 4% from October's all-time peak. Silver shed nearly 2%.
Oil prices had also climbed and Brent crude futures held steady at $63.1 a barrel on Tuesday. US crude futures were at $59.21 a barrel.
