Wall Street Higher after Bond Yield Falls Slightly

  • Market Overview

Wall Street traded slightly in the green on Monday after the yield on the 10-year US Treasury note fell below the multi-year high of 5% reached in the previous session. “The yield on the 10-year note touched the July 2007 milestone that it briefly attempted to scale last week, but retreated to 4.8629%, down 6 basis points,” Reuters added. Concerns about the conflict between Israel and Gaza, the future path of interest rates and earnings expected from tech giants like Microsoft (NASDAQ: MSFT ), Alphabet (NASDAQ: GOOGL ), Amazon (NASDAQ: AMZN ) and Meta (NASDAQ: META ) this week caused caution among investors. “Chipmaker Intel (NASDAQ: INTC ), oil major Exxon Mobil (NYSE: XOM ), General Motor (NYSE: GM ) are among other major companies set to report results this week.”

European markets were mixed at the start of this week, with the German DAX and French CAC40 slightly higher, while the British FTSE traded down as investors remained concerned about what the European Central Bank (ECB) could decide this week. In addition “Volkswagen (ETR: VOWG_p ) cut its profit margin outlook for the current year, citing negative effects from raw materials hedges at the end of Q3, while Dutch health technology company Philips (AS: PHG ) raised its full-year outlook after beating analyst expectations for Q3 core profit and comparable sales. Eyes were also on Roche (SIX: RO ) after the Swiss drugmaker agreed to acquire Telavant for an initial $7.1 billion,” Trading Economics added.

Higher US bond yields and continued conflict in the Middle East impacted the local bourse which closed down by 0.14% yesterday. While the rand traded below the psychological level of R19/USD at 18h30.

The same drivers caused Asian markets to close in the red on Monday. “Investors also turned cautious following reports that Foxconn Industrial’s (SS: 601138 ) parent company, a major supplier of Apple’s iPhones, was subjected to tax audits and land use probes,” reported Trading Economics.

A barrel of Brent crude traded at $90.71 at 18h30, while gold fell slightly to $1 977.89 an ounce at the same time.

PSG Wealth Daily Investment Update, 24 October 2023

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