(CercleFinance.com) – The New York Stock Exchange is expected to open lower on Friday morning as government bond yields continue to climb despite still reassuring inflation figures.
Half an hour before the opening, futures contracts on the main New York indices fell 0.1% to 0.5%, announcing a start to the session in the red.
The optimism that carried Wall Street until recently is giving way to nervousness over the continued rise in government bond yields, which no one really seems able to explain.
The yield on 10-year US Treasury bonds, whose sudden surge had already penalized risky assets last week, climbed to 4.15%, not far from its 15-year peaks reached last fall.
The prospect of an imminent end to the US Federal Reserve’s monetary tightening cycle was however fueled this morning by new inflation figures.
According to the Labor Department, producer prices rose only 0.3% in July, and only 0.2% excluding food, energy and commercial services.
“The latest inflation data is good news for the Fed,” said Tiffany Wilding, North America economist at PIMCO.
“After stubbornly firm inflation during the first part of the year, the US economy continues to move towards significant disinflation in the second half,” she predicts.
The index that measures the volatility of the S&P 500, dubbed the ‘fear index’, rose 1.4% to return above the 16-point mark.
After their procrastination in recent days, oil prices are on the rise again, with a gain of 0.7% to 83.4 dollars for American light crude (West Texas Intermediate, WTI).
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