US equity futures rebounded from an overnight selloff which dragged Asian and European stocks lower, and which was sparked by surging bond yields. Emini futures unchanged around 3,927 as 10Y yields slipped from a 1-year high of 1.34% to 1.29% as buyers emerged in the Asian and European session ahead of a number of US risk events, including the January FOMC Minutes.
The MSCI world equity benchmark fell 0.1% as a weaker start of trading in Europe offset a brief surge in Asia overnight. The index ended flat on Tuesday to snap 11 straight positive sessions, the longest streak in 17 years.
“The market is fairly frothy here from a sentiment perspective,” Liz Ann Sonders, chief investment strategist at Charles Schwab & Co., said on Bloomberg TV. “You have to put a move higher in yields that goes out of the comfort zone as a potential risk associated with that.”
Europe’s Stoxx 600 Index slipped amid a mixed bag of corporate results. Kering dragged retail shares lower after its Gucci brand missed estimates, and British American Tobacco Plc slid following its full-year results. Rio Tinto Group climbed after reporting a 20% jump in annual profit on a surge in iron ore prices. Here are some of the biggest European movers today: