· UBS says stocks have 5% to 10% further to run, but watch out for this yield level
UBS Global Wealth Management sees 5% to 10% upside for global stock markets, with emerging markets, financials, energy stocks and small caps best placed to capitalize.
A recent rise in the benchmark U.S. 10-year Treasury yield and other bond yields around the world have triggered volatility in equity markets, as investors began to question the valuations of growth-based sectors susceptible to higher interest rates.
The 10-year yield was hovering at around 1.6209% on Thursday morning in Europe, but UBS forecasts that it will reach around 2% by the end of the year.
· Stock futures rise as pressure on tech stocks pauses
Futures contracts tied to the major U.S. stock indexes rose in early morning trading on Thursday after pressure on technology stocks sent the Nasdaq Composite down 2% during the regular session.
Dow futures rose 68 points, while futures contracts tied to the S&P 500 and Nasdaq 100 were slightly higher.
The overnight moves came after a rash of late-day selling in high-growth and technology shares during the regular session.
The S&P 500 fell 0.6% after rising as much as 0.8% during the day, while the tech-heavy Nasdaq dropped 2% to close at its session low. Apple, Facebook and Netflix all slid more than 2%, while Tesla fell 4.8%.
The Dow Jones Industrial Average, which had outpaced its peers in positive territory for most of the day, dipped into the red in the final seconds of the session. The Dow industrials had jumped more than 300 points at its session high.
The Dow’s afternoon weakness came as reopening trades like airlines and cruise operators reversed earlier strength. Norwegian Cruise Line dropped 4.9%, while Royal Caribbean and Carnival fell 1.9% and 2.8%, respectively. Delta and United Airlines also ended the day lower.
Pressure on equities came even as bond yields continued to decline from recent highs. The 10-year Treasury yield dipped 3 basis points to 1.61% Wednesday, falling for a third day after the rate hit a 14-month high last week.
· Asian stocks trip on China tech woes, some cyclical shares bought
Asian equities bounced between gains and losses on Thursday as a selloff in Chinese technology shares due to concerns they will be de-listed from U.S. bourses and worries about a semiconductor shortage rattled some investors.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.07%. The index is close to wiping out all the gains it has posted so far this year.
MSCI’s gauge of stocks across the globe rose 0.06%.
The Shanghai Composite index .SSEC finished down 0.1% at 3,363.59 points. The blue-chip CSI300 index .CSI300 edged just 0.05% lower, but that was enough to push it to its lowest close since Dec. 11.
· Japanese shares end higher as cyclicals jump, tech weakness caps gains
Japanese shares closed higher on Thursday as investors scooped up beaten-down cyclical stocks, although gains were capped by technology shares that tracked Nasdaq lower.
The Nikkei 225 Index ended 1.14% higher at 28,729.88, ending a four-day losing streak, while the broader Topix jumped 1.4% to close at 1,955.55 after falling in three straight sessions.
· Tencent reports 28 pct revenue growth in 2020
Chinese internet giant Tencent on Wednesday reported a 28 percent year-on-year growth in revenue for 2020, raking in around 482 billion yuan (about 73.9 billion U.S. dollars).
· European markets open lower as Covid surge weighs on sentiment
European stocks opened lower on Thursday, as investors consider the ramifications of a surge in coronavirus cases in the region, and EU leaders discuss possible blocks on vaccine exports.
The pan-European Stoxx 600 fell 0.5% at the start of trading, with oil and gas stocks shedding 1.3% to lead losses as all sectors and major bourses slid into the red.
Reference: CNBC, Reuters
Thai
Eng