In This Article:
Investing.com - Here are the top five things you need to know in financial markets on Friday, March 22:
1. Global stocks mostly lower as economic woes weigh
A wave of risk-off sentiment swept through markets after signs of a further economic deterioration in Europe. while caution reigned ahead of high-level U.S.-China trade talks scheduled for next week.
Advertisement: High Yield Savings Offers
U.S. futures pointed to a lower open as economic worries dampened Thursday’s tech-inspired rally. At 5:57 AM ET (9:57 GMT), the blue-chip Dow futures fell 124 points, or 0.5%, S&P 500 futures dropped 12 points, or 0.4%, while the Nasdaq 100 futures traded down 25 points, or 0.3%.
Weak readings of Eurozone business growth on Friday added to the downbeat outlook, sending European bourses lower. The pan-European Euro Stoxx 50 fell 0.7% by 5:56 AM ET (9:56 GMT).
The news comes hot on the heels of the Federal Reserve's move to take further rate hikes out of its projections for 2019, in a marked about-face from its prior forecast for two increases this year.
2. Bond yields worldwide tumble to new lows
As central banks shift to a more accommodative stance, global bond yields are dropping to multi-year lows.
Japan’s 10-year benchmark yield hit its lowest level since 2016, while the yield on the safe-haven 10-year German Bund fell briefly below 0% for the first time since the autumn of 2016. New Zealand’s comparative fell below 2% for the first time, while Australia’s equivalent was just three basis points away from a record low.
The yield on U.S. 10-year Treasuries declined on Friday, tumbling around 4 basis points to below 2.50%, its lowest level since January 2018.
John Lonski, chief economist at Moody’s Capital Markets Research, ventured that the Federal Reserve will cut interest rates if the 10-year Treasury yield drops below 2.4%. If job creation doesn't pick up from February's levels, "a lowering of fed funds midpoint to 2.125% could occur as early as the June 19 meeting of the FOMC,” he said..
3. Nike sinks 4% on disappointing North America sales
Shares in Nike (NYSE:NKE) sank more than 4% in pre-market trade on Friday after the world’s largest sportswear maker reported quarterly sales in North America, its largest market, that missed expectations.
North America sales rose 7% to $3.81 billion in the third quarter, falling short of estimates of $3.87 billion, according to IBES data from Refinitiv.
Nike’s guidance was also a source of concern as it forecast low single-digit revenue growth for the current quarter, while analysts had estimated a 6.1% advance.