European and Asian Stocks Decline Amid US Economic Concerns and Early Fed Easing Expectations: Energy Sector Hit Hard by Oversupply and Falling Crude Oil Prices, Tech Stocks Slump After Disappointing Earnings Reports
Energy sector was hit hard by oversupply and falling crude oil prices.
European and Asian stocks declined on June 4, 2024.
Tech stocks slumped after disappointing earnings reports from Salesforce and Nvidia.
US economy concerns weighed against expectations for early Fed policy easing.
US manufacturing contracted in May, leading to a slide in Treasury yields and oil prices.
European and Asian stocks experienced declines on June 4, as investors weighed concerns about the health of the US economy against stronger expectations for early Federal Reserve policy easing. In Europe, energy stocks led a decline in Europe's Stoxx 600 Index due to concerns about oversupply and falling crude oil prices. The Dow Jones Industrial Average and S&P 500 in the US also saw declines, with tech stocks taking a hit after disappointing earnings reports from Salesforce and Nvidia. Asian markets, including Japan's Nikkei 225 index, South Korea's Kospi, Hong Kong's Hang Seng index, China's Shanghai Composite index, and Australia's S&P/ASX 200 also experienced losses. US manufacturing contracted in May as indicated by the Institute for Supply Management report, leading to a slide in Treasury yields and a decline in oil prices due to worries about weaker demand growth for fuel. The yield on the 10-year Treasury fell from 4.50% to 4.39%. Job openings employers were advertising at the end of April showed overall growth for jobs and workers' wages, but stocks of companies whose profits are most closely tied to the strength of the economy, such as those in the oil-and-gas industry and big technology companies like Halliburton, Exxon Mobil, and Nvidia saw declines. Tan Jing Yi of Mizuho Bank noted that this report could be a deeper cause for concern beneath the hood. The significance of the report led some investors to take profits.
Treasury yields slid in the bond market after US manufacturing report
Yield on 10-year Treasury fell to 4.39% from 4.50%
Accuracy
Asian shares retreated after US manufacturing report
Deception
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None Found At Time Of
Publication
Fallacies
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The article contains several informal fallacies and appeals to authority. The author uses inflammatory rhetoric by describing the report as a 'distinct wave of U.S. pessimism' and questioning its significance with phrases like 'manufactured excuse' and 'deeper cause for concern beneath the hood'. The author also quotes Tan Jing Yi, an analyst from Mizuho Bank, who makes an appeal to authority by stating her opinion as fact without providing any evidence. Additionally, the article contains several dichotomous depictions by contrasting the performance of different industries and companies.
The yield on the 10-year Treasury fell to 4.39% from 4.50% late Friday.
Analysts questioned the significance of the report, given that the indicator has been declining for most of the past two years.
That included the oil-and-gas industry, as the price of crude tumbled on worries about weaker demand growth for fuel.
Nvidia climbed another 4.9% to bring its gain for this year to 132.2% after unveiling new products and services over the weekend.
GameStop soared 21% in a move reminiscent of its early 2021 rocket ride that shook Wall Street and brought the term ‘meme stock’ into the parlance of our times.
European stocks slipped due to concerns about the US economy and expectations for early Fed policy easing
Asian equities struggled in a mixed session with India's stocks, currency and bonds all dropping as initial ballot counting signaled a narrow victory for Prime Minister Narendra Modi-led Bharatiya Janata Party
JetBlue Airways sales performance for this quarter will be somewhat better than expected as the carrier works to improve operations and capitalize on healthy overall demand trends
Skydance Media plans to offer $23 a share to investors in Paramount Global’s voting stock as part of its plan to merge with the film and TV giant
A.P. Moller-Maersk raised its full-year profit forecast due to congestion in the Red Sea having a larger than previously expected impact on the world’s supply lines, which in turn is boosting freight rates
Accuracy
US data showed factory activity shrank at a faster pace and job openings are expected to drop for the third consecutive month
Swap contracts fully price in a quarter-point rate cut in December with odds of a move as soon as September edging up to around 50% and November also given high odds
