GLOBAL MARKETS-Wall Street headed higher as tech investors lick their wounds
* Rise in U.S. stock futures push
* Crude oil prices slip from 2014 highs
* Rise in U.S. Treasury yields stall
*
* Risk of
* Nasdaq enters correction territory but futures up
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However, fears that the U.S. Federal Reserve will be more aggressive in raising interest rates this year than the market has priced in continued to cap investor confidence.
Crude oil prices eased off their 2014 peaks, and the dollar dipped as the week's rally in U.S. Treasury yields paused.
Nasdaq futures were up 0.7%, suggesting Wednesday's selloff in tech stocks due to rising yields and Federal Reserve tightening would pause for now.
The tech-laden Nasdaq is down more than 10% from its Nov.19 closing record high. S&P 500 and Dow stock futures were also firmer.
U.S. data due on Thursday include the Philadelphia Fed survey for January and U.S. initial jobless claims.
In
The MSCI all country stock index was in positive territory with a gain of 0.2% at 729 points, but is still down about 3.8% so far this year.
"There is a tonne of caution now," said
Rising U.S. interest rates, which would raise borrowing costs, could dent global growth prospects and the earnings outlook for international companies.
A Reuters poll of economists showed they expect the Fed to tighten monetary policy at a much faster pace than thought a month ago to tame high inflation.
Shah said the year opened with elevated valuations in markets and the sell-off in bonds since then has fuelled a growing sense of caution as market participants ask if they have priced in enough Fed rate hikes.
"That's what's driving a lot of the caution at the moment. Even with four hikes, the question is, is that enough and should we get ahead of this continued forecasting that we have been seeing," Shah said.
European Central Bank head
Asian share markets broke a five-day slide, pushing higher
on Thursday as
Analysts at ING said geopolitical risks, notably the
possibility of
U.S. President Joe Biden predicted on Wednesday that
Fed rate hike worries pushed U.S. Treasury yields to
two-year highs on Wednesday, and taking
On Thursday, U.S. yields edged up but remained below their highs in the previous session.
The benchmark U.S. 10-year yield was little changed at 1.836% from a U.S. close on Wednesday of 1.827%, and the policy-sensitive two-year yield touched 1.0413% compared with a U.S. close of 1.025%.
The pause in Treasury yields' march higher kept the greenback in check, with the dollar index, which measures the greenback against six major peers, little changed at 95.617 as commodity currencies benefited from high oil prices.
The U.S. dollar was little changed against the Japanese yen
at 114.28, and was flat against the euro at
In commodity markets, oil prices eased off elevated levels after touching their highest since 2014 on Wednesday on strong demand and short-term supply disruptions.
Global benchmark Brent crude was last down 0.4% at
Gold paused after its best session in three months a day
earlier. Spot gold was little changed at
(Additional reporting by