LONDON, Dec 5- Dollar bonds issued by Ukrainian companies back in the easy-money times are taking a hit on doubts over the country's solvency and fears that a currency devaluation or capital curbs might propel firms into default.» Read More
The second half of this year should be better for bonds than the "miserable" first half, said Jack Malvey, a fixed-income strategist at Lehman Brothers, on "Morning Call." "Collectively, investors had half a percent return," Malvey said about the first half of 2007. He added, bond risk will continue until at least September or October.
Any number of things, from energy prices to Fed policy to geopolitical events, could derail what's expected to be a solid second half.
Stocks may open higher after early weakness on this final day of the second quarter. European markets are mostly lower, and Asia was mixed with Tokyo up 1%. The discovery of an explosive device in a car in London impacted market tone in Europe.
Global mergers and acquisitions volume advanced by a record $1.67 trillion in the second-quarter, Dealogic reports. The global credit market has also had a strong run this year, with global corporate bond issuance, for both high-yield and investment grade, up around 30% in the first half from the same period a year ago.
Stocks are flat ahead of the opening, though stock markets worldwide are springing higher on the back of Wall Street's gains Wednesday. The focus today is on the Fed.
Stock futures point lower this morning after a weak showing in equities markets worldwide. European stocks are trading lower, and Asian markets were mostly down overnight. Volatility will no doubt be the tone of the day, as the Fed starts its two-day meeting. Durable goods fell 2.8%, below expectations. The dollar slid after the report and Treasurys rallied.
Stock futures are perking up this morning after three sessions of selling. Housing starts for May are reported today and there are a few earnings reports to make headlines.
In a special edition of "Power Lunch at the Four Seasons," Abby Joseph Cohen, the chief U.S. portfolio strategist at Goldman Sachs, offered her perspective on the markets, the S&P 500 and the global economy to CNBC's Bill Griffeth.
The dollar gained on the Swiss franc on Thursday and approached a 4-1/2-year high against the yen as investors continued to punish low-yielding currencies in a quest for higher returns.
An uptick in bond yields and rising oil prices are adding pressure to stock futures after yesterday's rocky trading day. Asian stocks were higher overnight, but European markets are wilting this morning.
Stock futures are laying a firm foundation for a higher opening today, as some big earnings dominate the morning headlines. Morgan Stanley stock is climbing after the firm reported a 41% increase in profit.
Investors have to ask themselves some critical questions this week. Chief among them: are higher Treasury yields here to stay and are we close to the top in yields?
Rob Vanden Assem, portfolio manager, SunAmerican Strategic Bond Fund, told CNBC’s “Squawk on the Street” that he’s not fretting about what The Wall Street Journal called “The Coming Credit Meltdown.”
The direction of bond yields will be the key factor for European stock markets next week, according to Bruno Verstraete, CEO of Nautilus Invest.
Inflation data will set the agenda today as traders await the release of the CPI. Stock markets around the world are higher.
Stock futures are higher today as investors await wholesale inflation data while keeping an eye on the bond market. Global stock markets rebounded after yesterday's turnaround on Wall Street and tamer bond markets.
A hedge fund managed by Bear Stearns is scrambling to sell large amounts of mortgage-backed bonds in a potentially troubling sign for the broader mortgage-backed bond market, The Wall Street Journal reported in its online edition.
Like a cyclone, the rate move in the global bond market is unsettling everything in its path and leaving a new high-tide mark for credit worldwide.
"Cash is king" in today's bond market -- if rates keep rising. That's the opinion shared by Joseph Balestrino, senior vice president and senior portfolio manager at Federated Investors, and Tony Crescenzi, chief bond market strategist at Miller Tabak. The bond mavens advised "Morning Call" viewers how to play the market.
In an interview with CNBC, former bond bull Gross said strong global growth will be a drag on long-term bond yields.