Investment Daily: US stocks edged lower, while the Treasury yield curve steepened
30 September 2026
Key takeaways
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US stocks edged lower; Treasury yield curve steepened.
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European stocks and government bonds were mixed.
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Asian stocks mostly fell.
Markets
US stocks edged lower on Tuesday ahead of inflation and jobs data. The S&P 500 fell 0.2%.
US Treasuries traded mixed, and the yield curve steepened as investors weighed downbeat macro prints, comments from Fed officials, corporate bond issuance and lower oil prices. 10-year yields closed flat at 5.24%, while 2-year yields fell 5bp to 4.88%.
European stocks lacked clear direction on Tuesday. The Euro Stoxx 50 rose 0.3%, alongside a 0.1% gain in the German DAX, while the French CAC fell 0.5%. In the UK, the FTSE 100 ended 0.5% lower.
European government bonds were mixed. 10-year German Bund yields were down 2bp to 3.62%, while 10-year French bond yields rose 4bp to 4.81%. In the UK, 10-year gilt yields edged down 1bp to 5.41%.
Asian stock markets mostly declined on Tuesday amid investors’ ongoing concerns about high global yields and oil prices. Japan’s Nikkei 225 fell 0.6% as financial shares weakened, while South Korea’s Kospi shed 0.3%. Hong Kong’s Hang Seng slid 0.5%, whereas China’s Shanghai Composite bucked the regional trend, closing 0.2% higher on hopes of supportive property-market policies. Elsewhere, India’s Sensex lost 0.3%.
Crude oil prices fell on Tuesday as supply worries eased. WTI for November delivery settled 3.5% lower at USD89.4 per barrel.
Key Data Releases and Events
Releases yesterday
In the US, JOLTS job openings dropped to 7.08mn in August, from an upwardly revised 7.34 million in July, and well below market expectations. The Conference Board consumer confidence index fell to 81.9 in September compared with a downwardly revised 88.6 in August, signalling increased caution amongst households.
The Reserve Bank of Australia resumed tightening, raising its policy rate by 25bp to 4.60% as expected amid persistent inflationary pressures. Although the central bank reiterated that further hikes remained possible, Governor Bullock noted the committee had considered extending its rate pause at this meeting.
Releases due today (30 September 2026)
In the US, changes to the measurement of some components are expected to affect August’s PCE price index. The ADP employment measure has risen modestly in recent months, consistent with stabilisation in the labour market.
In China, the manufacturing PMI is expected to improve modestly, while the non-manufacturing index may remain below 50.
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