Home » Business » Dow futures delete Bond Yeal worrying – US politics tumultuous | RYT9

Dow futures delete Bond Yeal worrying – US politics tumultuous | RYT9

The Dow Jones Futures fell today. Indicating that the Wall Street stock market will fall tonight. While investors are concerned about the rebound in US government bond yields. And political instability in the US

As of 20.36 Thai time, the Dow Jones futures down 55 points or 0.18% to 30,919 points.

The US 10-year Treasury yield hit 1.174% overnight, the highest since March 20, 2020, while the 30-year government bond yield rose to 1.904%. Which is the highest level since March 2020 as well

Investors worry that rising US Treasury yields will drive up inflation in the United States. This may make the Federal Reserve (Fed) decide to delay buying government bonds. This includes mortgage-backed debt securities (MBS).

Investors are also worried about the stock becoming expensive, with the S&P 500’s Forward P / E ratio now at 22.7x, near its highest since 2000.

The rising Forward P / E Ratio will signal a slump in the market in the next phase. At the moment, the stock has a high value compared to the benchmark in the past.

Investors keep an eye on the disclosure of 4Q2020 results of listed companies. JP Morgan Citigroup and Wells Fargo will release results on Friday. While analysts predicted that Companies in the S&P 500 will see a 9.8 percent drop in performance in 4Q2020, but will gain 16.4 percent in 1Q2021.

The US House of Representatives will vote on a motion to impeach President Donald. Trump today After he incited his supporters to raid the Parliament House on Wednesday. To hinder the process of announcing Mr. Joe’s victory Biden in the presidential election

It is expected that the motion will be approved by the House of Representatives. But it might be overturned in the Senate. Due to lack of adequate support

President Trump said that Removing him from office It’s dangerous for the US. While it will create dissatisfaction with many Americans

President Trump’s remarks raised concerns that his supporters could be violent, while Joe Biden is due to be inaugurated as President of the United States on Jan. 20.

Goldman Sachs chief analyst Jan Hatzius said: US stock and bond markets may soon revitalize strongly. Due to the rising US government bond yields. And the fact that the Fed began to slow the stimulus measures.

Wall Street shares hit all-time highs on Friday. And if considering from March 2020 Which is the period when the coronavirus Began to spread in the US The Dow and the S&P 500 have rallied nearly 70%, while the Nasdaq soared more than 80%.

The 10-year US Treasury yield jumped above 1% last week. After Democrats won the Senate election in Georgia. This allows the party to have absolute power in both the White House, the Senate and the House of Representatives.

The US government bond is the benchmark bond for debt instruments worldwide. The rebound in US Treasury yields has also resulted in an increase in bond interest rates worldwide. Causing companies to spend more money on debt repayment Which will affect the financial status And the company’s share price

In addition, the Fed will begin to slow down its stimulus package through a quantitative easing (QE) reduction of its bond purchase limit will reduce the Fed’s injecting money into the economy. This will have a serious impact on the stock market as seen in 2013.

However, Hatzius said that Goldman Sachs remained confident in the US stock market over the long term. It is believed that the market will continue to have an uptrend. The positive factor was the low inflation rate. And fiscal measures are still conducive to economic recovery.

Goldman Sachs last week revised its forecast for this year’s US economy. It is expected to expand 6.4% from the previous forecast of 5.6% in response to the new stimulus package under the government of Joe Biden.


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