By Dow Jones Newswires Staff
U.S. stock futures were down after Tuesday’s declines on Wall Street, led by tech, and the dollar continued to fall amid concerns over U.S. government debt as President Trump tries to push through his tax bill.
Treasury yields, meanwhile, were on the rise again. Asian stock markets ended mixed while European stock markets fell at the open.
–The 30-year U.S. Treasury yield approached 5% again as fiscal concerns weighed on long-end U.S. debt. The 30-year yield was recently up almost 3 basis points to last trade at 4.993%, according to LSEG data. The two-year Treasury yield was up 1.5 basis points at 3.982% and the 10-year yield rose 3 basis points to 4.512%.
–The dollar fell to a two-week low with investors “grappling with elevated uncertainty around U.S. fiscal policy and the role of Treasuries and the dollar as portfolio diversifiers and safe havens,” Danske Bank analysts said in a note. The DXY dollar index against a basket of major currencies was recently at 99.4230.
–In stock markets, futures for the Dow Jones Industrial Average were trading down 0.4%, S&P 500 futures were off 0.5% and tech-heavy Nasdaq futures were down 0.6%.
–Stocks in Asia ended mixed as Japan’s Nikkei 225 index declined 0.6% after the latest export data showed that the country’s shipments to the U.S. fell in April for the first time in four months. Japanese government bonds were also under pressure amid weak demand after Tuesday’s poorly received 20-year bond auction. Meanwhile, Hong Kong’s Hang Seng gained 0.4% as market debutant CATL’s shares continued to rise, and China’s benchmark Shanghai Composite climbed 0.2%.
–In Europe, the Stoxx Europe 600 dropped 0.2% in morning trading, France’s CAC 40 decreased 0.3% and Germany’s DAX fell 0.3%. The U.K.’s FTSE 100 lost 0.1% while sterling rose to a three-year high against the dollar after data showed U.K. inflation accelerated by more than expected in April.
–Oil prices gained more than 1% in early trade following a CNN report that U.S. intelligence suggests Israel is preparing to strike Iranian nuclear facilities. Brent crude was up 1.1% to $66.07 a barrel, while WTI rose 1.2% to $62.75 a barrel. Gold prices gained on the weaker U.S. dollar and amid some renewed safe-haven demand.
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(END) Dow Jones Newswires
05-21-25 0441ET
