The Dow Jones Industrial Average was set for a higher open Monday morning as bond yields rose and oil prices hit their highest level in three years.
Future for the
Dow Jones Industrial Average
increased by 63 points, or 0.2%. It wasn’t all good news, however, as
futures contracts fell 0.1% and 0.55%, respectively.
The rise in Treasury yields – the 10-year rose 0.026 percentage point to 1.487% – helps explain the divergence. Last week, the Fed signaled that it was almost ready to cut, or decrease, the amount of bonds it buys a month, and markets are also taking potential interest rate hikes in stride, betting that ‘such a decision will not disrupt the economic recovery. Value stocks, which tend to be more economically sensitive than fast-growing stocks like many in the tech space, gained on Monday and help explain the Dow’s outperformance.
International Brent oil benchmarks changed hands at three-year highs, up 1.5% to $ 78.41 a barrel. US oil futures also rose to $ 75.15.
âThis move has real momentum behind it, as well as a strong fundamental rationale as oil markets tighten,â said Neil Wilson, analyst at brokerage Markets.com. âThe strain of the physical market means stocks are being reduced around the world. “
Overseas, Hong Kong
Hang Seng Index
closed just below flat. Struggling China Evergrande may not survive its own financial woes, but the People’s Bank of China has already pumped tens of billions of dollars into the banking system, making it clear it will not allow contagion.
rose 0.8%, outperforming other European indices, after weekend election results showed the center-left Social Democrats were getting ahead, giving leader Olaf Scholz a mandate to train a government.
Read also : The stock market has set aside Evergrande’s concerns for China. Why this is a mistake.
Here are 12 stocks in motion on Monday:
With rising oil prices, oil producers
Western Oil (ticker: OXY) and
APA Corp. (APA) saw their shares increase by 3% and 2.7% respectively.
Bath and Body The stock (BBWI) rose 0.9% after being overweight Neutral at Atlantic Equities.
Hyatt Hotels (H) stock fell 2.7% after being demoted to Underperform from Neutral at Bank of America.
PA (BP.UK) increased by 2% and
Royal Dutch Shell (RDSA.UK) was up 2.6% in London while
Total (TTE.France) climbed 2.7% in Paris.
Evergrande’s electric vehicle arm,
Evergrande New Energy Auto (0708.HK), fell 9.4% in Hong Kong as its parent company’s cash flow crisis spread. The automaker warned of a lack of funds and canceled a Shanghai stock exchange listing. The title is down 93.4% since the start of the year.
Rolls Royce (RR.UK) rose 9.4% in London, after the British engineering group won a major contract to supply engines to the US Air Force’s B-52 Stratofortress.
Macau has tightened travel restrictions amid concerns over Covid-19, adding pressure on the already weakened gaming industry in the world’s largest gaming hub.
Sands of China (1928.HK) fell 4%,
Wynn Macau (1128.HK) slipped 4.5%, and
MGM China (2282.HK) fell 10.4% in Hong Kong.
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