Speeding China is sweet for some, sour for others! | MarketTalk: What’s up today? | Swissquote

Show notes

Yesterday was driven by a broadly stronger US dollar, but also higher treasury yields and higher equity valuations as investor sentiment got a boost after a strongly positive surprise from the New York Empire State manufacturing index.
The US 2-year yield is now at around 4.20%, the highest levels since the Silicon Valley Bank (SVB) collapsed, with potential of a further rise as the bank stress seems mostly abated by now.
Odds for Federal Reserve (Fed) rate cut toward the year-end fell to 25bp, from up to 100bp expected at some point at the high of the SVB crisis.
The US 10-year yield is now around 3.60%. An advance above this level has acted as a selling signal for equities in December and in February.
Elsewhere, the Chinese GDP growth accelerated, and strong China data helped stopping the US oil selloff into the $80pb level, but the US equity futures didn’t really cheer up the news on fear that faster Chinese growth could boost energy prices, hence inflation and rate hikes.
If that’s the case, tech stocks will certainly be the first on the chopping block while appetite for energy and mining stocks could help the FTSE 100 outperform peers.
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