Investment Daily: US stocks and Treasuries fell as oil prices rose
11 June 2026
Key takeaways
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US stocks and Treasuries fell.
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European stocks and government bonds fell.
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Asian stocks mostly fell.
Markets
US stocks fell on Wednesday amid higher oil prices and Treasury yields, as well as further weakness in semiconductor and AI infrastructure stocks. The S&P 500 closed 1.6% lower.
US Treasuries fell as oil prices rose amid renewed geopolitical concerns, despite a marginally lower than expected core CPI print. 10-year yields rose 3bp to 4.55%.
European stocks mostly fell on Wednesday ahead of today’s ECB policy decision. The Euro Stoxx 50 ended down 0.7%. The German DAX lost 1.0% and the French CAC 40 closed 0.5% lower. In the UK, the FTSE 100 gained 0.3%.
European government bonds fell. 10-year German bund yields and 10-year French bond yields both climbed 4bp to 3.08% and 3.85%, respectively. In the UK, 10-year gilt yields rose 3bp to 4.93%.
Asian stock markets traded mixed but mostly lower on Wednesday, led by losses in tech-heavy markets, ahead of the US CPI data release. Korea’s Kospi dropped 4.5% while Japan’s Nikkei 225 fell 1.9%. Elsewhere, Hong Kong’s Hang Seng and China’s Shanghai Composite fell 0.6% and 0.4%, respectively. India’s Sensex ended little changed (+0.1%).
Crude oil prices rose on Wednesday. WTI crude for July delivery settled 2.1% higher at USD90.0 per barrel.
Key Data Releases and Events
Releases yesterday
In the US, headline CPI inflation rose to 4.2% yoy in May, from 3.8% yoy in April, due to higher energy prices, while the mom increase in core CPI was slightly less than expected.
In China, headline CPI inflation held steady at 1.2% yoy in May, as higher prices of transport fuel and consumer electronics products were offset by food/pork price deflation and subdued core and services inflation. PPI inflation accelerated to 3.9% yoy in May from 2.8% yoy in April, driven by upstream commodity sectors and AI-led compute and electrification demand.
The Bank of Canada kept its policy rate at 2.25% as policymakers weighed rising prices against a softening economy.
Releases due today (11 June 2026)
In the US, PPI inflation has been boosted in recent months by energy prices and AI computing related goods.
The European Central Bank (ECB) may hike its policy rate by 25bp to 2.25%, given recent ECB comments, with President Lagarde likely to deliver a hawkish press conference.
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