Global shares ease, but rising bond yields remain in focus ahead of Biden’s infrastructure speech

Global shares ease, but rising bond yields remain in focus ahead of Biden’s infrastructure speech

Global stocks eased on Wednesday as markets stabilized following a volatile session the previous day, after the Archegos hedge fund default rattled equity investors and helped push government bond yields to pre-pandemic highs.

Futures on the tech-heavy Nasdaq 100 were up by 0.1%, while futures on the S&P 500 and Dow Jones were mostly flat, suggesting a steady start to trade later in the day.

Investors were also awaiting President Joe Biden's speech later in the day on his infrastructure spending.

Rising Treasury yields however continue to put pressure on stocks globally. The benchmark 10-year US Treasury yield has risen this week to around 1.75%, its highest since early last year, before the onset of the pandemic.

As COVID-19 vaccinations roll out and the economy gradually strengthens, investors have sold off their bond holdings in anticipation of a pickup in growth and inflation. This has fed some concern about high valuation sectors, including tech. The Nasdaq 100 hit a three-month low earlier this month, but has since been recovering steadily.

"Eminently some of the move could be in anticipation of Biden's infrastructure spending plans outline today, though these should by rights have been offset by quarter end rebalancing after a dire quarter for US Treasuries,"