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Rising bond yields fuelled the sell-off on Wall Street overnight with the benchmark 10-year yield topping 4% for the first time since November, while the 1-year Treasury yield climbed above 5%. Investors also reassessed the outlook for tightening monetary policy and economic growth as key data has been released around the world showing inflation continues to remain stubbornly high in Europe and other key regions. The Dow Jones closed up 0.02%, while the S&P500 fell 0.47% and the Nasdaq fell 0.66%. Salesforce shares soared 13% on Wednesday after the cloud software company posted better-than-expected fourth quarter and full year results including Q4 revenue up 14% to US$8.38bn, while full year revenue rose 22%. The company’s strong results were attributed to cost cutting measures including laying off staff during the quarter as it pushes to become more profitable.
Over in Europe economic data continues to weigh on investor sentiment in the region with local markets there closing mostly lower on Wednesday following the release of a flash estimate into Germany’s harmonised inflation rate showing an increase from 9.2% to 9.3% in February. This comes ahead of Eurozone inflation due out on Tuesday. Germany’s DAX fell 0.39%, the French CAC lost almost half a percent, and in the UK the FTSE100 rose almost half a perfect on Wednesday.
Global markets may face some relief today though buoyed by China releasing its official purchasing managers’ index data for February overnight showing a rise to 52.6 points in February, the highest since April 2012, in a sign the world’s second largest economy is beginning to ramp up manufacturing and overall operations following the removal of its harsh COVID restrictions.
What to watch today: