European stocks rose on Monday while US tech stocks futures fell, with bond yields near their one-year highs as the world’s largest economy was about to add $ 1.9 trillion in stimulus.
The Over the weekend, the US Senate approved its version of the $ 1.9 trillion stimulus package, Return it to the US House of Representatives for approval before President Joe Biden can sign it into law. Sudden Rise in Bond Yields – With UMUSD10Y 10-Year Treasuries,
A 64bp hike in 2021, through Friday – has led investors to rotate from assets seen to involve extended valuations, such as companies in the tech sector, to less-demanding sectors with less demanding valuations.
The Stoxx Europe 600 SXXP,
It is up 0.6%, with companies that have struggled during the COVID-19 pandemic at the forefront. Cruise operator Carnival CCL,
Oil Services Company TechnipFMC FTI,
Tourism conglomerate TUI TUI,
And the Klepierre LI shopping center operator,
Topped the leaderboard.
HelloFresh HFG Takeaway Maker,
And Neal’s Hydrogen Fuel Company,
Both have risen 100% over the last 52 weeks, and have fallen sharply.
Futures on the high-tech Nasdaq-100 NQ00,
It fell 1.6%.
Florent Bouchon, a strategist at French bank Natixis, said there are a lot of reasons why markets are nervous, but he expects any equity outburst will be limited as long as the Fed remains pessimistic.
“In terms of valuation, it appears that the ten years in the United States are close to fair value, taking into account every uncertainty that determines what it is,” he said. “Although the US fiscal stimulus plan may be huge, it is not expected to generate high inflation, but rather deepen the country’s trade deficit.”
Shares in educational publisher Pearson PSON,
It fell by 5% before turning around and up by 5%. The company’s results and The outlook was largely in line with expectations It has plans to sell the local publishing business for international educational courses and occupy less real estate.