Squawk Box Europe Express

Yields soar, hitting tech stocks. Both the S&P 500 and Nasdaq retreat in the face of the U.S. 10-year bill reaching a 14-year high. U.S.-China relations under the Biden administration are off to a rocky start as the superpowers’ top diplomats meet for the first time in Anchorage. The scheduled short opening session descended into an hour-long exchange of insults and acrimony over internal and...

Federal Reserve Chair Jerome Powell holds a dovish line. The central bank sees interest rates staying near zero until at least 2023, despite Fed members offering a more optimistic outlook for growth and inflation this year. Markets cheered Powell’s announcements with the Dow closing at over 33-thousand points for the first time while yields ease. However, U.S. futures point to a muted open on Wall...

U.S. markets are on tenterhooks with all eyes on the Federal Reserve, as investors wait to see whether Fed Chair Jerome Powell will react to rising bond yields and increasing inflation speculation at the close of the two day FOMC meetings today. Back on the continent, it's the third and final day of voting in an election that could see Prime Minister Mark Rutte win a fourth consecutive term - havi...

The Dow and S&P 500 hit new highs, as investors bank on the economy reopening. Investors will keep an eye out on the Fed which prepares to meet later today. In Europe, vaccine efforts could face delays after Germany, France, Italy and Spain all pause their Astrazeneca jab rollouts over blood clot fears. The European Medicines Agency's safety committee is due to meet today on the matter, as the...

President Biden signs the $1.9tn stimulus bill and in a prime time TV address he unveils the roadmap out of lockdown, urging eligible Americans to take the vaccine where possible. U.S. equities react positively with both the Dow and S&P 500 hitting new highs. Shares in South Korean web retail giant Coupang rally up to 40 per cent after the company lists on the NYSE - Wall Street’s largest list...

The U.S. Congress passes the $1.9tn virus stimulus bill and sends it onto President Biden to sign into law. The Dow hits a record high, while U.S. Treasury yields pare down after moderate take-up in the latest 10-year auction. Across the Atlantic, ECB policy makers react with caution over rising sovereign bond yields ahead of today’s central bank meeting. GE is to sell its jet-leasing business to...

The Nasdaq marks its best session since November, just one day after slipping into correction territory, as bond yields ease. Latest data from China fuels inflation concerns, with factory prices rising at their fastest pace in two-and-a-half years. GFG Alliance holds last-ditch talks with Greensill Capital as the supply chain finance group files for insolvency, amid reports Softbank pumped $400m i...

The Dow rallies to a record high but the U.S. tech rotation to cyclicals continues with the Nasdaq suffering a fall into correction territory. However, Ark Invest founder Cathie Wood tells CNBC she is optimistic the bull market is broadening and has space to run. Following the Senate’s approval of President Biden’s $1.9tn stimulus bill, so-called ‘meme stocks’ are rallying on expectations that som...

China says relations with the U.S. should move on from “zero-sum finger-pointing” as Beijing calls for the removal of “unreasonable curbs on co-operation”. Early U.S. futures are mixed despite President Biden’s $1.9tn stimulus plan passing the Senate before it heads back to the House. Brent crude tops $70 a barrel for the first time since the outbreak of the pandemic, while WTI hits a 2-year high...

The Nasdaq turns negative for 2021 as tech stocks continue to weigh on the back of Federal Reserve Chairman Jerome Powell’s failure to address the recent surge in bond yields and investors’ inflation jitters. OPEC+ leaders have agreed to maintain supply cuts until April amid ongoing demand uncertainty, nudging prices upwards. China cools down recovery expectations, outlining a growth target of mor...

Tech stocks continue to weigh on Wall Street with sharp sell-offs in Asia mirroring the declines. Spikes in bond yields are once-again blamed. We speak with Bundesbank President Jens Weidmann who says he is ready to react to the moves. No big surprises in the UK Budget as Chancellor Rishi Sunak pledges billions of pounds to support workers and businesses post-pandemic. Plans to shore up the balloo...

UK Chancellor of the Exchequer Rishi Sunak is set to unveil his 2021 Budget, which is expected to include an extension to the worker furlough scheme but also corporate tax hikes in a bid “to do whatever it takes” to bolster the British economy. Wall Street dips into the red with tech shares weighing on the Nasdaq in particular. President Biden announces the U.S. will have enough vaccine doses to i...

The S&P posted its strongest day of trade since June as U.S. stocks continue to rebound amid a pull-back in Treasury yields, with fears of higher interest rates easing. Apple jumps up to 5 per cent on the Nasdaq following a Warren Buffett endorsement in his annual letter to investors and after the reopening of its 270 U.S. stores. Video-calling firm Zoom is also in the green, going higher in l...

Last week’s U.S. Treasury yield highs recede with stock futures rising sharply. Sentiment has been partially boosted by higher prospects for stimulus with President Biden urging Senate to pass his $1.9tn Covid-19 stimulus bill after it was approved by the House of Representatives. Legendary investor Warren Buffett warns to “never bet against America” in his annual Berkshire Hathaway shareholder le...

Equities sell off strongly across Asia with tech stocks being dumped hardest. On Wall Street, the Nasdaq suffers a fall of 3.5 percent - its worst session since October - as the 10-year bond yield rally gathers pace. EU leaders meet virtually to discuss the disorderly rollout of vaccines across the bloc. EC President Ursula Von Der Leyen remains bullish that targets will be met by summer however E...

Federal Reserve Chairman Jerome Powell allays U.S. inflation concerns in his testimony to the House, causing Asian markets to jump and Wall Street to pare back losses in another intra-day comeback. Berkshire Hathaway’s vice-chairman Charlie Munger slams “this new bunch of gamblers”, criticising SPACs, Tesla and cryptocurrencies for the increasingly frenzied speculation in the markets. This, as Gam...

Whipsawing on Wall Street. The Dow manages to claw back a 360-point loss to end yesterday’s session in the green following Federal Reserve Chairman Jerome Powell’s attempts to ease concerns about higher rates and inflation during a Senate testimony. Bitcoin is also volatile, temporarily falling below the $50k-mark, but recouping some losses after payment company Square invested $170m in the c...

HSBC beats earnings expectations despite full-year profit falling by more than a third. Europe’s largest lender is promising to resume its dividend payout this year. Big tech companies weigh on the Nasdaq and S&P but the Dow moves to the upside on wider recovery optimism in the U.S. Tesla CEO Elon Musk is $15bn poorer, losing his title of world’s richest man to Amazon’s Jeff Bezos. The electri...

The UK is to ease lockdown restrictions with Prime Minister Boris Johnson set to detail his roadmap to recovery. All eyes are on the bond market with the U.S. 10-year Treasury yield hitting highs not seen since this time last year. Boeing grounds some of its 777 planes after a mid-air engine failure on a United Airlines flight causes debris to rain down on a Denver neighbourhood and prompts an eme...

U.S. Treasury Secretary Janet Yellen tells CNBC in an exclusive interview that only major stimulus will rouse the American economy following “the worst year for economic growth since WW2.” Yellen also said President Biden’s administration will maintain his predecessor’s trade pressure on China. The GameStop saga comes to Washington with Robinhood CEO Vlad Tenev going up against the House Financial...

It’s another busy day for earnings in Europe. Credit Suisse pre-tax Q4 profit slumps to a CHF88m loss as a slow post-virus recovery weighs on the lender. However, recent client activity is positively impacting its wealth management arm. Full-year revenue for 2020 at Airbus nose-dives by 30 per cent with an operating loss of €510m. The plane maker will also withhold its dividend this year. Mea...

The recent U.S. rally loses some steam. Meanwhile, the U.S. 10-year hits a 12-month high, with St. Louis Fed President James Bullard telling CNBC that investors are eyeing a “roaring” pick-up in post-pandemic U.S. economic activity. In energy news, the Gulf region’s cold snap is keeping refineries offline while millions suffer power blackouts. Robust commodity prices have led to Rio Tinto posting...

BHP announces a record half-year dividend payout after soaring iron ore prices pushed the mining giant’s results to a seven-year high. Oil prices, meanwhile, rise after a cold snap across Texas and northern Mexico leaves millions without power, shutting wells and refineries across the region. In virus news, the WHO has granted the Oxford University/AstraZeneca vaccination emergency use approval wh...

President Trump is acquitted of inciting the fatal Capitol Hill mob attack last month, marking the second time he has survived impeachment in 12 months. In Italy, Mario Draghi is sworn in as Prime Minister after unveiling a new cabinet featuring lawmakers from across the political spectrum. He’s now tasked with addressing the country’s economy recovery following the Covid pandemic. Brent crude and...

Disney soars in extended trading after the media giant tops first-quarter earnings forecasts, while subscriber numbers near 95m. Female-focused dating app Bumble lists on Wall Street with shares spiking on the debut. Strong sales in China and soaring online orders help L’Oréal to a topline beat. In political news, President Biden warns senators that Beijing could outstrip Washington on infrastruct...