U.S. bond investors are seeking new ways to hedge against the risk of a sharp rise in interest rates if the economy picks up and the Fed stops stimulus policies, the FT reports.
Asian stocks were under pressure on Wednesday as concerns rose if a bailout deal was still possible for Cyprus while Greater Chinese shares ignored the news to outperform the market as attention turned to domestic issues.
Chinese stocks are headed for a correction of up to 15 percent in the next two months, one technical analyst says.
With Cyprus creating a new wave of worry, markets will be looking to the Fed Wednesday to keep a steady hand on the tiller.
The euro dropped to near a four-month low against the US dollar on Tuesday and looked poised to extend losses as uncertainty about Cyprus reignited fears about the euro zone currency.
U.S. Treasurys prices climbed on Tuesday as a plan in Cyprus to tax bank accounts to help pay for a bailout unraveled, creating uncertainty about the island country's financial future and reviving fears about the stability of the euro zone.
Uncertainty about Cyprus set markets on edge, but they are far from pricing in the tiny country's exit from the euro.
Gold reversed earlier losses, hitting a 2-1/2 week high above $1,615 an ounce on renewed flight-to-safety investment before an anticipated vote by the Cyprus parliament on a bailout plan.
Oil fell Tuesday as Cyprus lawmakers rejected a measure to tax bank accounts as part of a bailout plan for its shriveled economy and worries persisted about Europe's debt problems.
European shares closed lower on Tuesday as markets await the outcome of a critical vote in Cyprus to tax bank deposits.
Stock index futures were higher on Tuesday as investors tried to shake off worries over Cyprus and following a better-than-expected housing starts report.
Prices for U.S. Treasurys climbed as investors awaited a parliamentary vote in Cyprus on a bailout plan crucial to avert bankruptcy.
Monetary policy could be set to change in the U.K. when George Osborne unveils his latest budget, but any alterations to the Bank of England's remit could sink the sterling even further, analysts told CNBC.
Asian markets licked their wounds on Tuesday after the previous day's sell-off on hopes that Cyprus's upcoming vote on the bank deposit levy will pass through parliament and secure the island's financial rescue.
Benchmark oil prices are likely to extend gains this week on expectations that the U.S. Federal Reserve will restate its commitment to an ultra-easy monetary policy at a meeting this week.
The bailout in Cyprus could mean a pause in the US stock-market rally but some market pros say it's also likely to give the Fed more ammunition to maintain its stimulus.
The euro tumbled to a more than three-month low against the U.S. dollar as a bailout plan for Cyprus that will tax bank deposits spurred contagion worries in the euro zone.
The bailout in Cyprus that rattled the markets and rekindled fears of the European debt crisis will be beneficial for U.S. stocks, analyst Meredith Whitney told CNBC.
Brent crude clawed back above $109 a barrel in choppy Monday trading, with oil undermined by falling stocks and a stronger dollar amid new euro zone turmoil.
Gold extended earlier gains to hit its highest since late February, with some investors drawn to the precious metal's safe haven properties as a radical bailout package for Cyprus shook sentiment in the euro zone.
Get the best of CNBC in your inbox
Brazil's central bank raised interest rates, a move that signals President Rousseff could make more market-friendly policy changes.
Asia's export growth has stalled since a post-financial crisis recovery, faced with a combination of weak global demand and structural changes, HSBC said.
Oil titan Harold Hamm tells CNBC: Don't believe the hype. "There's not a glut in the market at all."