US equities, yields fall as US-China tensions rise. Global equity markets gave up recent gains on Wednesday, while US Treasury yields fell to a two-week low as traders weighed continued positive corporate results and a resurgence in US-China tensions that could add to supply chain concerns. Major US companies, including tech giant Microsoft Corp and Google parent Alphabet Inc, have reported stronger-than-expected earnings, helping lift the S&P 500 and Dow Industrials to record closing highs this week, while the tech-heavy Nasdaq is 1% from its record peak. But the US telecommunications regulator voted on Tuesday to revoke China Telecom’s US subsidiary’s authorization to operate in the United States, opening a new front in already strained relations between the world’s two largest economies and exacerbating investor concerns about supply chains. “This is clearly one of the most intense reporting weeks for technology stocks, and the company that has been the ‘golden boy’ is still reporting significant numbers,” said Tom Plumb, portfolio manager at Plumb Balanced Fund. "There's a dichotomy between companies that are reacting proactively to supply chain issues versus those that are waiting for a thaw in U.S.-China relations." The MSCI world equity index, which tracks stocks in 50 countries, fell 0.55%, while the pan-European STOXX 600 index fell 0.36%. On Wall Street Wednesday, the Nasdaq was unchanged. The Dow and S&P 500 closed lower, dragged down by cyclical sectors including financials, health care, energy and industrials. The Dow Jones Industrial Average fell 0.74% to 35,490.69 while the S&P 500 lost 0.51% to 4,551.68 and the Nasdaq Composite was unchanged at 15,235.84. The benchmark 10-year U.S. Treasury yield fell to a two-week low, while the 2-year Treasury yield hit a 19-month high, further flattening the yield curve. As the likely timing of the Federal Reserve's first interest rate hike comes into sharper focus. The US 10-year yield fell to 1.552%, while the 2-year yield jumped to 0.515%, the highest since March 2020. The US dollar lost value against major currencies on Wednesday after the Bank of Canada began a series of hawkish central bank policy comments. The move shattered the calm that had settled in currency markets this week, sending the dollar index down 0.101% to 93.858. Prices of safe-haven Rose Gold were in seesawing trade, supported by falling US yields and a softer dollar, although strong risk appetite in equity markets remained in check. Spot gold was up 0.21% at $1,796.48 an ounce, after falling sharply in the previous session. Oil prices fell after a larger-than-expected build in US crude, even as fuel inventories fell and tanks at the country’s largest storage hub opted to continue emptying. Brent Oil Futures ended up 2.1% at $84.58 a barrel, while West Texas Intermediate (WTI) crude settled down 2.4% at $82.66 a barrel. That's the News from "US Equities & Yields Drop on US-China Tensions" from GICTrade. Also read other news and articles full of information about commodities, stocks and forex in the GIC Journal. Follow and get GICT bonuses by following Friday Blessings and 100% Deposit Bonus.