Equities: Stocks pressured by higher yields and energy risks - Deutsche Bank

Deutsche Bank strategists noted that stocks faced pressure from higher yields and energy risks. Energy sectors outperformed while industrials and materials lagged. Asian equities were mostly weaker while Chinese markets saw outperformance. The S&P 500 dipped by 0.18% on Oman-Iran deal news. Tech indices had mixed results with Nasdaq slipping but Mag-7 and semiconductor index advancing.

Energy was the only sector with a clear gain, while industrials and materials struggled. European markets posted more positive performance compared to US counterparts, with Stoxx 600 and CAC 40 hitting fresh highs. The DAX also saw a rise, while the FTSE 100 underperformed. In rates, inflation pricing modestly rose (+0.9bps for 5yr) and nominal yields increased.

In Asia, most equity markets were weaker except for Chinese related markets, with the KOSPI falling and Nikkei trading lower but on track for weekly gain. Mainland Chinese equities outperformed, with CSI 300 and Shanghai Composite advancing. Hong Kong's Hang Seng and S&P/ASX 200 showed modest gains and declines respectively. US equity futures and Treasuries were flat.

GBP/USD remained slightly defensive, and EUR/USD slipped around 1.1670 after failing to reach 1.1700. Gold surged past $4,600 per troy ounce, while the US Treasury announced a liquidity support buyback operation increase.