European markets open in the red
European markets opened well into Red Monday. Here were the shares after 15 minutes of trading:
France’s CAC down 0.94%
Germany’s DAX lost 0.58%
Italy’s FTSE MIB down 0.92%
Spain’s Capricorn lost 0.4%
– Katrina Bishop
Treasury yields are ticking higher
Treasury yields ticked higher early Monday.
The yield on the 2-year Treasury bond rose 1 basis point to trade at 3.8713% as of 2:45 am ET. It comes after the yield surged over 3.9% last week — a level last seen in November 2007.
The 10-year government bond yield, meanwhile, was less than a basis point higher at 3.4554%. Yields move inversely to prices. One basis point equals 0.01%.
Read more here.
– Katrina Bishop
European stocks slid last week
The pan-European Stoxx 600 slipped 2.89% last week:
UK stock markets closed as the country marks the death of Queen Elizabeth
In a release last week, the London Stock Exchange Group said it was “deeply saddened by the passing of Her Majesty Queen Elizabeth II.”
“The day of Her Majesty Queen Elizabeth II’s funeral, 19 September 2022, has been declared a UK bank holiday and as a result the London Stock Exchange (the ‘Stock Exchange’) will be closed to stock markets,” she added.
– Katrina Bishop
CNBC Pro: Buy these anti-inflationary funds to protect your money, says strategist
With inflation stubbornly high, where can investors hide given the volatility of US stocks and bonds?
According to Mark Jolley, global strategist at CCB International Securities, there are three types of funds that currently look attractive. He named his favorites in each category.
CNBC Pro subscribers can read more here.
— Wheat Tan
Oil prices rise as China’s Covid lockdown lift lifts demand outlook
Oil prices rose on Monday as the Chinese megacity of Chengdu ended a two-week lockdown.
Both oil benchmarks were each up more than 1% at the start of the session, and Brent crude futures were last up 0.66% to $91.95 a barrel. US West Texas Intermediate was up 0.56% to $85.59 a barrel.
The rise in the demand outlook offsets fears that potential rate hikes later this week will increase recession risks.
— Lee Ying Shan
CNBC Pro: This ETF carries risk — but beats volatility
With volatility picking up again, investors looking for short-term trading could turn to this ETF, which has a track record of outperforming during periods of extreme market movement.
“It’s probably the prospect of very quick and sizeable gains when everyone else in the market seems to be losing their shirts that I think is attractive about this fund,” said Daniel Martins, principal researcher and portfolio strategist at DM Martins Research.
However, despite the potential for high returns, the ETF carries a high level of risk and is not suitable for every investor.
Pro subscribers can read more here.
– Zavier Ong
Stocks could drop below 3,700 before the next rally, says Fundstrat’s Newton
Mark Newton, Fundstrat’s head of technical analysis, said investors shouldn’t get too tempted by a possible rebound in the coming days as the S&P 500 could drop below 3,700 before a more meaningful rally begins.
“Triple Witching Friday’s September close at multi-week lows is particularly negative for the prospects for a rally, and further selling over the next few weeks is likely to still undercut 3,700 before a recovery rally can begin in October,” he said.
Friday’s S&P 500 ended the week at 3,873.33.
“While one can’t rule out a 1-2 day recovery attempt given this week’s decline, I don’t expect much strength until prices hit support below 3,700 in October,” he added. “From a tactical perspective, ‘cash’ remains king and one should be patient until markets hit downside targets and begin to show either volume and breadth divergence or buying capitulation.”
– Tanaya Macheel