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Stocks take no pleasure in the central bank surprises today

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In fact, US futures are even extending losses on the day now. Here’s a snapshot of things:

  • Eurostoxx -1.4%
  • Germany DAX -1.1%
  • France CAC 40 -1.4%
  • UK FTSE -0.2%
  • S&P 500 futures -0.7%
  • Nasdaq futures -1.0%
  • Dow futures -0.5%

So, what’s the cause for the lack of cheer in stocks even as the SNB and BOE surprised by staying on hold today? Well, it’s all about the bond market.

And 10-year Treasury yields are still keeping higher by 3 bps today to 4.441% at the moment. As bond yields continue to shoot higher, that is going to keep creating more angst for equities. So, just be mindful of that ongoing development when reviewing broader markets and the central bank decisions this week.

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