Equities: Yield relief and healthcare gains lift markets – Deutsche Bank
Deutsche Bank strategists note that equities rebounded as a sharp decline in long-end US Treasury yields helped the S&P 500 end a three-day losing streak.
Deutsche Bank analysts report that equities experienced a rebound as long-end US Treasury yields saw a significant drop, allowing the S&P 500 to conclude a three-day decline. Strong performance in Moderna and Merck stocks also boosted the market, driven by successful trial results for a skin cancer vaccine. This positive trend extended to Asian markets, with KOSPI, Nikkei, Hang Seng, Shanghai Comp, and CSI 300 all recording gains.
However, European equities lagged behind due to less favorable exposure to the US Treasury announcement and rising energy prices. While Asian markets rallied, US equity performance would have been stronger without a decline in chip stocks. The S&P 500 futures also rose by +0.17%, and major Asian indices experienced increases. The FXStreet Insights Team, comprising experienced journalists, reviewed the market observations, which include commercial insights and additional analyst perspectives.
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