FTSE 100 moves higher after Dow recovery but investors remain cautious – business live

Late rally on Wall Street lifts European shares after $4trn losses last week 1.53pm GMT Here’s IG’s opening calls for the US markets:US Opening Calls:#DOW 24483 +1.18%#SPX 2650 +1.13%#NASDAQ 6481 +1.12%#IGOpeningCall 1.00pm GMT Shares may be moving higher in the wake of Friday’s rebound on Wall Street, but US bond yields are also on the rise.Normally bond yields fall when markets rise, but 10 year US treasury yields remain at four year highs. Fawad Razaqzada, technical analyst at Forex.com, said:Have stocks and bond yields decoupled again? Friday’s reversal and today’s bullish follow-through in the stock markets have not been supported by rising government bond prices. As bonds have continued to sell-off, yields have pushed further higher. The benchmark 10-year Treasury yield has now climbed to above 2.9% for the first time since early 2014.Should yields march further higher – which is quite possible with the upcoming US inflation and retail sales data to look forward to on Wednesday – then there is a possibility the equity markets could be in for another volatile week. Indeed, we think that far too much technical damage has been incurred in the indices for the bulls to make a quick comeback and with all guns blazing…So, Friday’s bounce may well prove to be a mere dead-cat bounce for stocks. Continue reading…
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