Global markets mixed as Treasury yields rise above 5%

NEW YORK: Global equity markets ended mixed as rising US Treasury yields continued to weigh on investor sentiment following the Federal Reserve’s 25-basis-point interest rate hike earlier in the week.

The Dow Jones Industrial Average fell 0.18%, while the S&P 500 gained 0.17% and the Nasdaq Composite rose 0.39%.

The yield on the 10-year US Treasury note climbed above 5% to 5.006%, reinforcing concerns that borrowing costs could remain elevated for longer. Expectations of further monetary tightening have also continued to influence risk appetite across global markets.

Technology stocks remained relatively resilient, with investor attention continuing to be focused on the longer-term growth outlook for artificial intelligence despite the higher-for-longer interest-rate environment.

Treasury yields

Oil prices also remained a concern, although Brent crude eased 0.69% to US$103.37 a barrel. Elevated energy prices continued to contribute to inflation concerns and could keep pressure on global bond yields.

In Europe, the STOXX Europe 600 declined 1.11% amid broad-based selling across most sectors.

Asian markets, however, ended mostly higher. South Korea’s Kospi surged 2.66%, Japan’s Nikkei 225 gained 1.38%, Hong Kong’s Hang Seng Index rose 0.60%, while China’s Shanghai Composite advanced 0.94%.

Investors are expected to continue monitoring US Treasury yields, oil prices, Federal Reserve policy signals and developments in the Middle East for their impact on global risk sentiment and emerging-market fund flows.

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