Thursday, 21 April 2022 02:40

Markets struggle to rise; eyes turn to balance sheets and bonds

Written by Evelyn Alas

According to Bloomberg Línea, U.S. markets, whose tone had deteriorated since yesterday's close, are struggling to move into the positive camp. But the results of Netflix, whose shares came to fall 27% before the opening of the markets, cooled the mood of investors in the early hours of the day; in Europe, however, buying outnumbered selling since the stock markets opened.

Bonds

Bond premiums remain a key driver of investor sentiment. The real yield on the 10-year US Treasury bond turned positive for the first time since march 2020. This not only points to a tightening of funding conditions, but may also overshadow the attractiveness of investing in assets such as equities. Moments ago, equities were recovering in value.

China maintains interest rates

On the microeconomic front, China this morning held lending rates for the third consecutive session. The prime rate for one-year concessions remained unchanged at 3.7%. The five-year rate, the benchmark for long-term loans including mortgages, remained unchanged at 4.6%. The country has prioritized economic expansion, especially now that it has had to restrict mobility due to new Covid-19 infections.

Macroeconomic

Among the macroeconomic data released this morning, march industrial prices in Germany stood out, rising by no less than 30.9%. The figure beats analysts' estimate of +28.2% for the period, and february's reading (+25.9%).