U.S. stocks pare gain; Pound, gilts drop on BOE comment
BNN Bloomberg
U.S. Stocks trimmed their advance and the pound and U.K. gilts weakened after the Bank of England said a report that it is likely to delay the sale of government bonds until the market has calmed was “inaccurate.”
European stocks surrendered most of their fourth day of gains. U.S. equity futures were still 1 per cent higher, after the S&P 500 closed above a key technical support level on Monday. Amazon.com Inc. and Microsoft Corp. led major technology and internet stocks higher in New York premarket trading on Tuesday.
A Bloomberg gauge of the greenback steadied, while the pound weakened by 0.7 per cent after the BOE denied the Financial Times report that the central bank is pushing back the start of its quantitative tightening. The yield on the U.K. 10-year bond rose 10 basis points to 4.08 per cent. Treasury yields edged higher.
The BOE's comment took some steam out of a recovery in risk assets spurred by positive company results, cheaper valuations that enticed buyers and after policy reversals soothed concerns about UK assets. With headwinds from inflation, risks to the economy and hawkish central banks continuing to confront markets, there's debate over how durable the gains will prove.
