By Marc Jones and Pete Schroeder <\/p>\n
LONDON\/WASHINGTON, Sept 10 (Reuters) – Nervy markets were waiting for key U.S. inflation data on Thursday after the ECB lifted its interest rates for a second time this year and oil held above $100 \u200ca barrel following U.S. and Iranian tanker missile strikes in the Strait of Hormuz. <\/p>\n
Oil prices remained a concern for investors \u200cafter Brent crude climbed above $100 a barrel on Wednesday for the first time since July, raising fears of renewed inflation pressure just as bond yields in major \u200beconomies hover near multi-decade highs. <\/p>\n
Wall Street opened the day lower again with the Dow Jones Industrial Average down 0.33% in early trading. The S&P 500 dropped 0.56% and the Nasdaq Composite fell 0.97%. MSCI’s gauge of stocks worldwide was down 0.69%. <\/p>\n
The European Central Bank’s decision to raise its key interest rate to 2.50% from 2.25% on Thursday came as little surprise given the recent signals and barely moved the region’s stock \u200cmarkets [.EU] and the euro. <\/p>\n
Germany’s 10-year bond yield \u2060held at 3.45%, the highest since the heat of the euro zone crisis in April 2011, while France’s OAT yield was at another post-2008 high of 4.35%. <\/p>\n
Away from the euro zone, the UK’s 10-year and \u206020-year yields bobbed near respective post-2007 and 1998 highs of 5.26% and 5.87% and benchmark 10-year U.S. Treasury yields ticked up to 4.91%. <\/p>\n
Investors were also digesting signs of looser U.S. fiscal policy after President Donald Trump promised to pay every U.S. adult a $5,000 “Trump dividend” if his party wins November’s \u200bcongressional \u200belections. The Treasury Department had also announced a $6 billion buyback of longer-dated \u200bU.S. bonds that disappointed some investors. <\/p>\n
Attention will now shift \u200cto the U.S., where key inflation data ahead of a Federal Reserve rate-setting meeting next week could inform interest rate expectations. Markets are awaiting U.S. producer price index data due at 1230 GMT, followed by consumer price inflation data on Friday. <\/p>\n
A majority of economists polled by Reuters expect the Fed to hold interest rates steady at its September 15-16 meeting and for the rest of this year. <\/p>\n
OIL PRESSURE <\/p>\n
In the commodity markets, Brent crude futures jumped another 3.8% to $105 a barrel amid the re-escalation of the Iran war and as traders \u200cgrappled with the prospect of yet more inflationary pressure. [O\/R] <\/p>\n
“I think that Brent pushing \u200bthrough the $100 level will be seen by many in the market as a \u200bsignificant event in the current scheme of things,” said \u200bNick Twidale, chief market strategist at ATFX Global. <\/p>\n
Twidale said traders who had been holding off in hopes of \u200ca Middle East peace deal may now “hit the trigger \u200bas the realities of a longer \u200bconflict kick in.” <\/p>\n
Investor attention will stay on the bond market. After the global selloff pushed 30-year yields to their highest level since 2007, Treasury Secretary Scott Bessent in August said that the government would increase buybacks of longer-dated bonds. <\/p>\n
“Bessent has \u200blaid down the gauntlet to a group of \u200csophisticated traders who don’t like to be told what to do,” said Matt Simpson, senior market analyst at StoneX. <\/p>\n
“He \u200bmay win a battle or two, but he’ll only win the war if bond traders let him.” <\/p>\n
(Reporting by Marc \u200bJones and Pete Schroeder; Editing by Elaine Hardcastle and Joe Bavier) <\/p>\n","protected":false},"excerpt":{"rendered":"By Marc Jones and Pete Schroeder LONDON\/WASHINGTON, Sept 10 (Reuters) – Nervy markets were waiting for key U.S.…\n","protected":false},"author":2,"featured_media":620610,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[54972,72,2606,113,61,5890,5232,60],"class_list":["post-620609","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-brent-crude","tag-business","tag-ecb","tag-economy","tag-ie","tag-inflation-data","tag-interest-rates","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/620609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=620609"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/620609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/620610"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=620609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=620609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=620609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}