Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Bond Selloff, Peloton in Play, Tyson Foods Earnings - What's Moving Markets

Economy Feb 07, 2022 12:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Geoffrey Smith 

Investing.com --  Bond markets continue to struggle after the ECB's hawkish turn on Thursday and the surprising revisions to U.S. employment data on Friday. Stocks are also set to open lower, but Peloton is bucking the trend after reports suggesting that both Amazon (NASDAQ:AMZN) and Nike (NYSE:NKE) are looking at bidding for the company. German Chancellor Olaf Scholz visits Washington as the west scrambles for a unified line to take on Russia's threats to Ukraine, while oil prices barely come off the boil as diplomats prepared to resume talks on lifting sanctions on Iran. Here's what you need to know in financial markets on Monday, 7th February.

1. Bond yields keep rising

Bond markets around the world remained under pressure after Friday’s U.S. employment data, which showed that the labour market had been far stronger in the last three months than initially expected. That reinforced expectations that the Federal Reserve may raise interest rates by 50 basis points at its March meeting, rather than just the 25 basis points which is still – just – the consensus.

U.S. Treasuries have stabilized in the ranges they fell into on Friday, but in Europe, yields continue to rise - and spreads between core and peripheral Eurozone markets continue to widen - following the European Central Bank’s meeting on Thursday, when ECB President Christine Lagarde pointedly refused to rule out an interest rate hike this year. Lagarde speaks in the EU Parliament at 9:45 AM ET (1445 GMT).

Dutch central bank head Klaas Knot, a noted ‘hawk’ said in an interview at the weekend he expects a hike as early as October. Italian 10-Year government bond yields rose 11 basis points, while their Greek equivalents rose 22 basis points. The benchmark German 10-Year yield rose 3 basis points to 0.24%, its highest in three years.

2. Peloton in play

Amazon and Nike are both considering a bid for Peloton Interactive (NASDAQ:PTON), according to various reports over the weekend.  The stock responded by rising 22% in premarket trading.

The maker of connected fitness equipment has come into play after losing over 80% of its value since peaking at the end of 2020, due to widening losses that have forced it to abandon its niche as a high-end hardware maker and seek a broader base of customers.

The group is already under pressure to shake up performance from activist shareholders. However, any acquisition by a Big Tech name would be likely to provoke substantial interest from antitrust regulators, who appear less inclined than before to accept Big Tech’s relentless expansion.

3. Stocks set to open lower on rate concerns; Tyson, Hasbro report earnings

U.S. stocks are set to open lower again on Monday, having had a mixed day on Friday in response to the labour market report.

By 6:15 AM ET (1115 GMT), Dow Jones futures were down 81 points, or 0.2%, while S&P 500 futures were down by a similar amount. NASDAQ 100 futures were down a little less, by 0.1%.

With only second-tier economic data due – consumer credit numbers for December come at 3 PM ET – the focus is likely to be on earnings, where Tyson Foods (NYSE:TSN), Loews (NYSE:L), Hasbro (NASDAQ:HAS) and ON Semiconductor are all due to report.

Also in focus will be Alibaba (NYSE:BABA), amid reports of a possible share sale by Softbank (OTC:SFTBY) coming down the line.

4. Scholz in Washington, Macron in Moscow

German Chancellor Olaf Scholz visits U.S. President Joe Biden in an attempt to iron out a sanctions package in case of a Russian invasion of Ukraine.  U.S. sources briefed again at the weekend that such a scenario is likely, despite Russian insistences to the contrary.

Various reports suggest that the U.S. and its European allies are struggling to find alternatives to Russian natural gas supplies which would give them the leverage to refuse flows through the Nord Stream 2 pipeline. That pipeline is currently awaiting final approval from German regulators. EU Commission President Ursula von der Leyen said Monday that Europe’s gas prices are likely to remain high for some time.

French President Emmanuel Macron, meanwhile, is to visit his Russian counterpart in Moscow. Putin received an endorsement of his position on Ukraine from Chinese President Xi Jinping when he visited Beijing last week.

5. Oil still bubbling despite Iran news

Crude oil prices continue to trade well above $90 a barrel, despite the lack of any major disruption to Texas’ energy complex from the winter storm at the end of last week.

There was only minor relief from news that talks on lifting sanctions on Iran will resume on Tuesday.

By 6:30 AM ET, U.S. crude futures were down 0.9% at $91.50 a barrel, while Brent crude was down 0.4% at $92.86 a barrel.

Bond Selloff, Peloton in Play, Tyson Foods Earnings - What's Moving Markets
 

Related Articles

Ukraine and Russia: What you need to know right now
Ukraine and Russia: What you need to know right now By Reuters - Jun 28, 2022 2

(Reuters) - Firefighters searched the rubble of a Ukrainian shopping mall where authorities said 36 people were missing after a Russian missile strike that killed at least 18, as...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email