UK Shares Fall as Deliveroo Plummets in Market Debut
The FTSE 100 traded below the 6,800 level on Wednesday, down from a 0.5% gain in the previous session, with meal delivery company Deliveroo tumbling more than 20% in its stock market debut on concerns over the company’s employment practices. On the data front, the British economy expanded 1.3% on quarter in Q4, slightly higher than initial estimates of a 1% growth. However, the revision does not change the big macro scenario.
10Y Yield Steadies, on Track for Strong Quarterly Rise
The yield on the benchmark 10-year Treasury note was little changed at 1.74% on Wednesday, after hitting a fresh 14-month high of 1.776% in the previous session. Investors await President Biden to provide more details on the new infrastructure plan while the ADP employment report will give an update on the labour market. The 10-year Treasury yield soared 83 basis points in the first quarter of the year, the biggest increase in over a decade as coronavirus vaccination and further fiscal stimulus support prospects of a strong economic recovery but could also lead to a spike in inflation and debt levels.
Philippines Stocks Slump 1.6% at Close
The PSE Index sank 102 points or 1.6% to end at 6,443 on Wednesday after the Philippines’ pandemic task force advisor recommended today an extension of the toughest quarantine level in Metro Manila and four surrounding provinces to curb a surge in COVID-19 infections. News that the yield on US 10 year Treasury note rose to 1.77%, the highest since the start of the pandemic, ahead of US President Joe Biden’s infrastructure spending announcement also weighed on sentiment. Meantime, the IMF said that strong US growth could help a global economic recovery, but may also cause tighter financial conditions and trigger significant outflows from emerging countries. Losers were broad-based: property (-2.1%), financials (-1.8%), holding firms (-1.2%), services (-1.1%), energy (-1%), industrials (-0.5%). For the month, the index plunged 6.3%.