GLOBAL MARKETS-Stocks Rise and Bond Yield Still at Highs Ahead of Powell Testimony

By Karin Strohecker and Sujata Rao

LONDON, Jan 11 (Reuters) – Global stocks rose on Tuesday and bond yields clung to their recent highs, before Federal Reserve Chairman Jerome Powell appears before the Senate Banking Committee, a event that could give investors more clues about the entity’s cycle of monetary adjustments.

* Powell, who aspires to a second four-year term at the helm of the Fed, will appear before the committee on Tuesday, followed by a hearing with the central bank vice president candidate Lael Brainard, scheduled for Thursday.

* Stock markets have had a difficult start to the year, as bets that the Fed could raise interest rates as early as March have prompted investors to downsize their risky assets and boost yields on US bonds. 10-year Treasury for a maximum of two years.

* The MSCI World Stock Index was up 0.2% to 742.93 points, and the European STOXX 600 was up 1%, snapping a three-day losing streak and enjoying its best day in nearly three weeks.

* “The path remains for growth to remain above trend, with healthy businesses and households and capital spending policies,” said Grace Peters, head of JPMorgan Private Bank.

* “Much of this money is beginning to enter the system, so we do not believe that aggressive attitude by central banks and rising bond yields will derail economic expansion or cause a prolonged decline in equities.” added.

* The Nikkei index fell 0.9% on the resumption of operations after the public holiday on Monday and the Chinese CSI300 lost 0.8%. On Wall Street, S&P 500 and Nasdaq futures pointed to a flat open.

* Yields on euro zone bonds hovered near their highs, while 10-year Treasuries hit a nearly two-year high above 1.8% overnight, before falling to 1.74%, providing slight support for the greenback.

* The dollar index, which compares the US currency to a basket of six leading currencies, was around 95.86 units. For its part, the euro reached a seven-week high against the Swiss franc.

* Bitcoin was trading back at around $ 42,200, having dropped below $ 40,000 on Monday for the first time since September.

* Crude prices were up around 1.5% after two days of losses.

(Reporting by Karin Strohecker, Sujata Rao in London and Anshuman Daga in Singapore; edited in Spanish by Carlos Serrano)



Reference-www.infobae.com

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