Rio Tinto logo

RIO - Rio Tinto News Story

6535p 58.0  0.9%

Last Trade - 07/05/21

Sector
Basic Materials
Size
Large Cap
Market Cap £105.80bn
Enterprise Value £109.70bn
Revenue £31.93bn
Position in Universe 12th / 1821

GLOBAL MARKETS-Rising U.S. yields cool down stocks

Wed 17th February, 2021 1:09pm
(Updates prices, adds details) * Ten-year U.S. Treasury yields reach 1.333% * MSCI world index falls 0.1% * Yen hits five-month low, Bitcoin climbs above $51,000 * Brent crude prices up 1.9% at 13-month high * Global asset performance http://tmsnrt.rs/2yaDPgn By Danilo Masoni MILAN, Feb 17 (Reuters) - The rally in stock markets stalled on Wednesday as a surge in U.S. Treasury yields on optimism about a swift economic recovery put pressure on pricey company valuations. Benchmark 10-year Treasury yields reached a one-year high to trade near pre-pandemic levels, as vaccine progress and encouraging economic data begin to drive investor focus on inflation. The MSCI world equity benchmark .MIWD00000PUS fell 0.1% by 1232 GMT, as weaker trading in Europe offset gains in Asia overnight. urn:newsml:reuters.com:*:nL4N2KN1WY The index, which tracks shares in 49 countries, ended flat on Tuesday to snap 11 straight positive sessions. S&P 500 ESc1 and Nasdaq NQc1 futures were trading flat and down 0.1% respectively, with eyes on U.S. retail sales data, which are estimated to have risen 1.1% in January. Ten-year Treasury yields US10YT=RR , up nearly 40 basis points this year, rose as high as 1.3330% before easing to 1.2989%. "Regarding the bond market sell-off, things are finally starting to get serious as real yields are on the rise, driven by bets ... of central banks tightening sooner than previously expected," said Arne Petimezas, analysts at AFS in Amsterdam. "Risk assets are now becoming vulnerable to a pull-back." In the short term, however, investors expect central banks to keep monetary policy loose and minutes later on Wednesday from the U.S Federal Reserve's January meeting are expected to reinforce that view. "Recent remarks by (Fed Chair Jerome) Powell and several other Fed officials show that the FOMC is very comfortable with its current policy stance," wrote UniCredit strategists. The gap between 10-year and two-year U.S. yields US2US10=TWEB also reached its widest in nearly three years in anticipation of short-term rates going nowhere. US/ In Europe, bets on a rise in inflation pushed the German yield curve to its steepest since March 2020 on Wednesday. urn:newsml:reuters.com:*:nL1N2KN0S3 Besides a cooling in stock-market exuberance, gold and the Japanese yen JPY= have been casualties of rising rates. Gold XAU= , which pays no income and tends to fall when yields rise, touched a two-week low on Wednesday and was last down 0.2% at $1,790.40 per ounce. GOL/ The yen is sensitive to U.S. rates because Japanese yields are anchored and higher U.S. returns can attract investment flows out of yen and into dollars. It fell to a five-month low against the dollar and has lost 2.7% this year. urn:newsml:reuters.com:*:nL1N2KN09Q The euro EUR=EBS fell 0.3% to $1.2046. Sterling GBP=D3 , which has been surging as vaccinations roll out rapidly across the United Kingdom, was last down 0.2% at $1.3873. Against the euro EURGBP=D3 , it rose 0.1% to a 10-month high. The dollar's index =USD against six other major currencies recovered from Tuesday's three-week low of 90.117 to last stand 0.1% higher at 90.810. Bitcoin BTC=BTSP , which some see as a hedge against inflation, rose to a high of $51,721 and was last up 4.4% after first crossing $50,000 on Tuesday. Analysts, however, warned of risks of tighter regulation and further volatility ahead in the cryptocurrency market. Gains in commodity prices have been another big driver of inflation expectations. They've caught a further boost from a Texas cold snap that has shut down about a fifth of U.S. oil production and sent energy prices higher. O/R Brent futures LCOc1 rose 1.9% to $64.57 a barrel, their highest in 13 months, as crude prices were underpinned by a major supply disruption in the southern United States this week where a winter storm hit Texas. U.S. crude futures CLc1 also rose 1.9%. urn:newsml:reuters.com:*:nL1N2KN06U Copper prices CMCU3 were hit by some profit taking but remained close to their highest level since 2012. urn:newsml:reuters.com:*:nL1N2KN0KW Global miner Rio Tinto RIO.L rode higher commodity prices to post its best annual earnings since 2011 and declare a record dividend. That sent its shares surging 3% to a record high. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar http://tmsnrt.rs/2egbfVh MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Danilo Masoni in Milan, additional reporting by Tom Westbrook in Singapore and Kevin Buckland in Tokyo; editing by Larry King) ((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging: danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni)) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA ))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.