Stocks Level Off as the Global Bond Selloff Declines – Europe Market Wrap

Stocks recovered modestly following days of losses as Alphabet boosted technology, but a severe bond selloff showed signs of easing. Gold reached a new all-time high.

Nasdaq 100 futures rose 0.7% after Google’s parent stock surged more than 6% in premarket trade. A verdict that it will not be forced to sell its Chrome browser boosted the search giant’s confidence. Nvidia recovered following its longest decline since March. Contracts for the S&P 500 increased 0.4%.

The sell-off in government debt also slowed. The yield on 30-year Treasuries approached 5% before reducing its rise. UK gilts and eurozone bonds made slight gains. Earlier in the day, Japan’s 20-year debt yields rose to their highest level since 1999.

Gold’s latest high occurred as rising predictions of US interest rate cuts boosted the metal’s appeal. The reduction in bond and equity prices has further bolstered its status as a shelter. Bullion rose as much as 0.4% to 3,546.96 per ounce before reducing gains.

Swaps currently indicate a 90% chance of a quarter-point Fed rate decrease later this month, with three more such moves projected by June.