Tuesday 24, October 2017 by William Mullally

Markets: benchmarks under pressure

Mihir Kapadia, Sun Global Investments

US equity indices took a pause from a string of record highs on Monday as major benchmarks came under pressure, with traders weighing the prospects for tax cuts and a mixed bag of earnings results. Treasuries had a small net bid but the move was rather mild. The US 10yr yield decreased 1.4bps to 2.37 per cent and the 2yr yield fell -1.2bps to 1.56 per cent. US stocks slipped Monday after the three major indices had hit all-time highs on Friday. We are deep into the US reporting season and almost 200 S&P 500 companies are due to report this week. The Dow Jones Industrial Average fell 0.2 per cent, the S&P 500 lost 0.4 per cent and Nasdaq closed 0.6 per cent lower.

In overnight trading, Asian indices are mostly in positive territory. The Nikkei 225 in Japan and Nifty in India are up 0.4 per cent. The Nikkei‘s advance comes on the back of buying after the landslide achieved by the Abe government which gives them a broad mandate for political, economic and military reform. The Shanghai Composite is flat ahead of crucial government appointments as a new leadership will be announced as the Community Party Congress concludes.