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Last Updated : Apr 29, 2018 09:25 AM IST | Source: Moneycontrol.com

Global weekly wrap: Rising bond yields, oil prices spook equity markets; US fall, Europe gains

All three major US indexes were down for the week at the end of a choppy session, ending two-week winning streaks. The Nasdaq Composite and the Dow Jones Industrial Average, meanwhile, finished the week with losses of 0.4 percent and 0.6 percent, respectively.

Sandip Das @Im_Sandip1
 
 
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Global stock markets gained during the week as the earnings season was largely better than expectations. The US 10-year bond yield surpassing 3 percent remains a concerns as it signals higher interest rates in the world biggest bond market.

Indian equity benchmarks rose to their highest level in over two months led by private sector lenders and Reliance Industries which rose to record high. The Nifty50 witnessed a breakout in morning trade which pushed the index above 10640 and then 10700 levels in trade on Friday.

However, the index failed to close above this level making a bullish pattern similar to ‘Opening Marubozu’ candle on the daily charts.

Close
The benchmark indices registered a positive close as the Nifty added 1.21 percent and the Sensex 1.61 percent ended April 27. NSE VIX ended at 12.02,

decreased by 7.11 percent over the week.

Weekly chart

US markets closed nearly flat on Friday as inflation worries and struggling technology and energy stocks were offset by an advance in the consumer

discretionary sector led by Amazon.

All three major US indexes were down for the week at the end of a choppy session, ending two-week winning streaks. The Nasdaq Composite and the Dow Jones Industrial Average, meanwhile, finished the week with losses of 0.4 percent and 0.6 percent, respectively.

Investors kept a close eye on Treasury yields, which touched new multi-year highs on Wednesday before slipping in the final two sessions. The benchmark 10-year yield crossed the 3 percent mark for the first time in over four years, going as high as 3.03 percent, before settling the week at 2.96 percent.

US jobless claims dropped to 209,000, a decrease of 24,000 from the previous week's revised level of 233,000. Economists had expected jobless claims to edge down to 230,000 from the 232,000 originally reported for the previous week.

European shares post fifth week of gains as earnings gather pace. The pan-European STOXX 600 index closed up 0.2 percent, a gain of 0.7 percent for a

week when bank results were in focus. FTSE 100 edged up to its highest in nearly three months.

The European Central Bank’s Governing Council left interest rates unchanged. The rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain at 0 percent, 0.25 percent and - 0.4 percent, respectively.

Asia Pacific markets rose on Friday, as investors watched for developments from the Korean peninsula. Japan's Nikkei 225 advanced 148.26 points, or 0.66 percent, to 22,467.87 and the Topix index added 5.1 points, or 0.29 percent, to 1,777.23. South Korea's Kospi trimmed early gains of more than 1 percent to add 16.76 points, or 0.68 percent, to 2,492.4.

MSCI indices ended in red for the week with Emerging market and Asia Pacific lost by 2.05 percent and 1.12 percent respectively over the week. Asian indices traded mixed over the week. On Friday all the Asian indices traded positive helped by strong results from some big US companies. BOJ kept its monetary policy on hold, leaving short-term interest rate target at minus 0.1 percent.

The Nikkei ended the week off 1.3 percent, the broad-based, large-cap TOPIX Index was down 2.2 percent, and the TOPIX Small Index had declined 2.1 percent.

Industrial output in Japan gained 1.2 percent on month in March, the Ministry of Economy, Trade and Industry. That topped forecasts for an increase of 0.5 percent following the 2.0 percent gain in February.

The Bank of Japan (BOJ) kept its monetary policy on hold, leaving the short-term interest rate target at minus 0.1 percent. The central bank said it will purchase Japanese government bonds so that the yield on the 10-year note will remain at around zero percent.

(With inputs from Reuters and other agencies)

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First Published on Apr 28, 2018 10:47 am
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