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Bond unease weighs on markets

A renewed rise in long-dated US Treasury yields and elevated oil prices unsettled investors on Thursday, with US equities closing lower. Asian shares were broadly firmer on Friday as Korean technology stocks rebounded, while Japanese equities declined after faster inflation reinforced expectations of further Bank of Japan tightening. Bitcoin extended its gains, while gold remained elevated amid a weaker US Dollar Index.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

USA Interest Rates
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US Treasury yields rose again on Thursday after a brief decline following the Treasury’s decision to increase its capacity for long-dated bond buybacks. The 30-year yield was below 5.3%, near Tuesday’s 19-year high of 5.337%, while the ten-year yield increased to 4.7%, and the two-year yield rose to 4.2%. The buyback programme may support liquidity in the Treasury market, but it has not eased concerns about persistent inflation, heavy debt issuance and US federal debt exceeding USD 40 trillion. Japanese and European government bonds initially rallied, while Brent crude oil futures fell 0.4% to USD 93.45 per barrel amid continued disruption to shipping through the Strait of Hormuz. Gold rose 0.3% to around USD 4530 per ounce, while bitcoin continued to climb (+8.4%) to around USD 75,300.

Asian shares rebound amid bond concerns

Asian equities rose on Friday, led by South Korean technology stocks, with the MSCI Asia Pacific index gaining slightly despite remaining on track for a weekly decline. Korea’s Kospi traded 1.4% higher but was still down almost 1% for the week, while Japan’s Nikkei 225 fell 0.6% on the day and nearly 5% over the week amid concerns that higher inflation could prompt a Bank of Japan rate increase, after Japanese core inflation rose to 1.8% year-on-year in July from 1.6% in June. Hong Kong’s Hang Seng Index gained 0.7% and mainland China’s CSI 300 rose 0.6%, while Australia’s S&P/ASX 200 fell 0.4%.

US shares decline as Walmart weighs

US equities fell on Thursday as disappointing second-quarter US sales from retailer Walmart, higher oil prices and rising Treasury yields undermined sentiment. The Dow Jones Industrial Average dropped 1.3% to 52,759.21 points, while the S&P 500 lost 0.9% to 7641.16 points and the Nasdaq-100 fell 0.7% to 29,213.17 points. Walmart shares slid 9.2% after the company forecast slower growth in the third quarter, while farm-equipment maker Deere gained 6.9% on encouraging results and its optimistic outlook for US agriculture in 2027.

Swiss exports rebound sharply in July

Exports rose 13.8% month-on-month in July, reversing a 3.6% decline in June and reaching CHF 27.8 billion, their highest level since March 2025, data released on Thursday showed. Chemical and pharmaceutical shipments drove the increase, rising 25.7%, while exports to Slovenia surged by CHF 2.7 billion and watch sales increased 5.8%. Imports fell 4.5% after rising 3.5% in June, largely reflecting lower chemical and pharmaceutical purchases, lifting the trade surplus to a record CHF 8.1 billion. European stock indices ended Thursday lower, with the Euro Stoxx 50 falling 0.4%, while Switzerland’s SMI slipped 0.1%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: UK retail sales (08:00), French Purchasing Managers’ Index (09:15), German Purchasing Managers’ Index (09:30), Euro-area Purchasing Managers’ Index (10:00), UK Purchasing Managers’ Index (10:30), Canadian retail sales (14:30) and US Purchasing Managers’ Index (15:45).

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Editor: Alessandro Fezzi
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