Nasdaq braced for beating as bond markets drive up costs

Nasdaq braced for beating as bond markets drive up costs

LONDON- Nasdaq traders were braced for a fresh pounding on Tuesday as a seven-year high for oil prices drove up global borrowing costs to pre-COVID levels, with even sub-zero German Bund yields at the brink of positive territory again. Europe's big bourses were already down over 1% EU. but dealers were nervously eyeing -1.6% Nasdaq futures where higher interest rates on ultra-safe bonds now make stratospheric valuations on tech stocks look ever more balmy. The Nasdaq's 4.5% loss so this year masks deeper falls -- 29 shares have lost 10% or more already this year, according to Capital Economics. There had been overnight drops for Asia's big tech names too despite China easing policy again and it all kept MSCI's index of world shares on course for its worst January since 2016. "The million dollar question is how quickly the Fed will move," said Hans Peterson, global head of asset allocation at SEB investment management. "I'm not sure. The only thing I'm sure of is that (global economic) growth is quite good. And when you lack conviction you decrease your bets." Investors are increasingly price in as many as four U.S. Fed hikes now this year and even one from