• Rising yields weigh on stocks
• Australia interest rate hike shocks
• Oil pauses after recent rally

Key Events

, , , and futures were pressured in pre-NY open trading on Tuesday by higher Treasury yields. European stocks also fell on expectations of a tightening monetary policy there.

The bullish sentiment yesterday—on the back of easing COVID restrictions in China, reports that US President Joe Biden may roll back some Chinese tariffs, as well as better than expected services data there—which pushed Wall Street markets higher is fading amid the persistent outlook for aggressive US monetary policy.

Gold recovered.

Global Financial Affairs

The Index fell with the and after UK Prime Minister Boris Johnson survived a no-confidence vote on Monday. However, the win by a simple majority of 211 Vs. 148 has weakened the position of the man who led the Conservatives to a landslide election victory in 2019. His political survival may have come down to the lack of a viable alternate leader.

Earlier Tuesday, most Asian stocks slipped as the surprised with its sharpest interest rate hike in 22 years—a 50 basis point increase to 0.85%. Moreover, policymakers indicated they would keep tightening as “is necessary” to combat rising prices.

However, the 1.53% decline by Australia’s was second to South Korea’s ‘s 1.66% drop. Stocks sold off there as the yield reached over 3.5%, the highest since Apr. 24, 2014. Samsung Electronics (KS:) lost nearly 2% of its value.

On Monday, US stocks closed higher after a choppy session. The outperformed, while the lagged. Amazon (NASDAQ:) climbed after implementing a 20-for-1 stock split, though technicals indicated pressure on the stock.

Trading developed a Shooting Star, confirming the resistance of the gap above.

Once again, Twitter (NYSE:) sold off after Elon Musk claimed the company was not providing accurate information about the number of bot accounts, which he said was in violation of their agreement.

Yields on the Treasury note edged down but remained above the critical 3% level reached for the first time since May. The high is weighing on equity markets ahead of key US on Friday.

Bond bears are attempting to blow out an H&S top. If yields fall below 2.7%, it will give the edge to bulls.

The rose for the third day, though it was finding resistance.

The greenback is developing a possible Shooting Star (requiring a close), which would confirm the resistance of the early May lows.

rebounded, ending a two-day slide amid a tug-of-war between bulls and bears.

Following the initial plunge, the price of the precious metal is fluctuating within a Rising Flag, bearish upon a downside breakout. However, it awaits the uptrend line which is prepared to lend support.

fell to its lowest level in 9 days.

The drop tests the bottom of either a Rising Flag or Pennant, both of which are expected to be bearish, upon a downside breakout, following the sharp decline. The completion of the continuation pattern will confirm a much larger bearish pattern.

Yesterday, after reaching its highest level in three months, was little changed.

Up Ahead

• On Wednesday, UK figures are released.
• US are published on Wednesday.
• On Thursday, the ECB announces its .

Market Moves

Stocks

• The MSCI Asia Pacific Index fell 0.9%
• The MSCI Emerging Markets Index fell 0.9%

Currencies

• The rose 0.2% to 6.6701 per dollar

Bonds

• Germany’s yield fell two basis points to 1.30%

Commodities

• fell 0.3% to $119.11 a barrel
• rose 0.4% to $1,850.26 an ounce