On Tuesday, stocks showed moderate growth, and cryptocurrencies and global government bonds stabilized after sell-offs the day before, triggered by an expected interest rate hike in Japan, Reuters reports, writes UNN.
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S&P 500 futures remained stable after Wall Street's decline the day before, while stocks in Europe and Asia rose.
A little more calm in the Japanese government bond market after a strong Japanese government bond auction contributed to an improved mood, with 10-year and 30-year Japanese bond yields falling by about one basis point.
Bond yields move inversely to prices, and a week-long decline in Japanese government bonds due to concerns about the country's finances and an expected rate hike by the Bank of Japan led to 10-year yields reaching a 17-year high and 30-year yields reaching an all-time high.
This sell-off negatively affected global bonds on Monday: 10-year US Treasury yields rose by almost 8 basis points, and 10-year German bond yields by almost 6 basis points, which also led to a decline in stock markets.
On Tuesday, global bonds again followed the example of Japanese government bonds, but this time showed calm, the publication writes.
Bitcoin down 30% from October peak
Bitcoin, which some view as a possible leading indicator for risky assets, rose slightly on Tuesday after an alarming 5.2% drop on Monday and, at $87,000, was down 30% from its October peak.
"Things are pretty stable right now, we're ending this year with few negative surprises," said Sami Chaar, chief economist at Lombard Odier.
"Yesterday was mostly uneventful, except for crypto assets. Bitcoin (in the last few weeks) has fallen sharply, and, frankly, its impact on global markets has been limited," the expert pointed out.
The opinions of crypto industry representatives were less optimistic.
"Sentiment (in the cryptocurrency sector) ranges from anxiety to humility," said Jehan Chu, founder of blockchain venture capital firm Kenetic Capital, and the latest drop caught investors by surprise.
"The next few months will be crucial, but even the most optimistic may already be going into hibernation," he pointed out.
On Tuesday, the dollar remained broadly stable after its weakening on Monday helped the euro briefly rise above $1.165. The single currency last traded at $1.1605.
However, some investors are beginning to expect a longer-term dollar decline as the US prepares for further and faster interest rate cuts than many other countries.
Data released on Monday confirmed expectations of a Federal Reserve rate cut in December, with manufacturing contracting for the ninth consecutive month in November, although consumers exceeded analysts' expectations by making $23.6 billion in online purchases ahead of the holiday season.
The price of gold fell by 1%, dropping below $4,200 per ounce, but is still only about 4% off its October all-time high. Silver fell by almost 2%.
Oil prices also rose after drone attacks on Russian energy facilities, and Brent crude futures remained at $63.1 per barrel on Tuesday. US crude futures traded at $59.21 per barrel.