US stocks rallied amid crude oil’s rebound from a six-year low, while Treasuries retreated as concern eased that a rout in commodities and high-risk debt will prevent the Federal Reserve from raising interest rates as anticipated.
The Standard & Poor’s 500 Index reversed a drop to its cheapest level in two months with US crude edging back above US$36 ($50.80) a barrel as traders bought back some of their record bearish bets against the commodity. Yields on 10-year Treasuries climbed from a six-week low and emerging-market stocks sank as the odds of a Fed rate hike Wednesday held above 75%. An exchange- traded fund that tracks junk-rated corporate debt fell to a six- year low amid a rout that has forced at least three credit funds to wind down.
“We’re on hold until Wednesday,” said John Carey, a fund manager at Pioneer Investment Management Inc. in Boston, which oversees US$244.1 billion globally. “Right now the focus is macroeconomic, the Federal Reserve and commodities prices.”
A sense of unease prevailed across global financial markets two days before the Fed is expected to end seven years of holding rates near zero. Gyrations in the commodities market amplified concern that struggling resource producers won’t be able to stay solvent, while weakness in high-yield credit markets sparked fear of contagion. The prospect of tighter US monetary policy and more expensive cash has helped erase US$2.5 trillion from the value of global equities since Dec. 1, and stock swings have swelled.
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The Standard & Poor’s 500 Index reversed a drop to its cheapest level in two months with US crude edging back above US$36 ($50.80) a barrel as traders bought back some of their record bearish bets against the commodity. Yields on 10-year Treasuries climbed from a six-week low and emerging-market stocks sank as the odds of a Fed rate hike Wednesday held above 75%. An exchange- traded fund that tracks junk-rated corporate debt fell to a six- year low amid a rout that has forced at least three credit funds to wind down.
“We’re on hold until Wednesday,” said John Carey, a fund manager at Pioneer Investment Management Inc. in Boston, which oversees US$244.1 billion globally. “Right now the focus is macroeconomic, the Federal Reserve and commodities prices.”
A sense of unease prevailed across global financial markets two days before the Fed is expected to end seven years of holding rates near zero. Gyrations in the commodities market amplified concern that struggling resource producers won’t be able to stay solvent, while weakness in high-yield credit markets sparked fear of contagion. The prospect of tighter US monetary policy and more expensive cash has helped erase US$2.5 trillion from the value of global equities since Dec. 1, and stock swings have swelled.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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