Stock market today: World markets mixed as bond selling pressures Wall Street

Indias Sensex declined 0.4per cent to 65,545.88.Bangkoks SET was down 1.4 per cent and Taiwans Taiex fell 0.6 per cent.On Monday, the S and P 500 ended little changed and the Dow Jones Industrial Average slipped 0.2 per cent.The Nasdaq composite rose 0.7 per cent to 13,307.77.Oil-and-gas stocks sank as crude prices gave back some of the sharp gains made since the summer.Early Tuesday, US benchmark crude oil was up 11 cents at USD 88.93 per barrel in electronic trading on the New York Mercantile Exchange.Prices have pulled back after charging higher from USD70 in the summer.

World shares were mixed Tuesday after Wall Street simmered under pressure from rising bond yields.

US futures and oil prices edged higher.

Germany's DAX fell 0.3 per cent to 15,205.21 and the CAC 40 in Paris gave up 0.2per cent to 7,055.01. Britain's FTSE 100 gained 0.4per cent to 7,536.42.

Hong Kong's Hang Seng sank 2.7per cent to 17,331.22 as investors unloaded property shares. However, China Evergrande jumped 28 per cent after resuming trading Tuesday.

Its shares were suspended last week as the troubled real estate developer announced that its chairman was under investigation. Earlier in the session its shares soared more than 60per cent.

Markets in mainland China and South Korea remained closed for holidays.

Tokyo's Nikkei 225 index fell 1.6per cent to 31,237.94, while Australia's S and P/ASX 200 skidded 1.3per cent to 6,943.40. India's Sensex declined 0.4per cent to 65,545.88.

Bangkok's SET was down 1.4 per cent and Taiwan's Taiex fell 0.6 per cent.

On Monday, the S and P 500 ended little changed and the Dow Jones Industrial Average slipped 0.2 per cent.

The Nasdaq composite rose 0.7 per cent to 13,307.77.

Oil-and-gas stocks sank as crude prices gave back some of the sharp gains made since the summer.

Early Tuesday, US benchmark crude oil was up 11 cents at USD 88.93 per barrel in electronic trading on the New York Mercantile Exchange.

Prices have pulled back after charging higher from USD70 in the summer. A barrel of US crude fell USD 1.97 on Monday to settle at USD88.82.

Brent crude, the international standard, added 4 cents to USD 90.75 per barrel. On Monday, Brent lost USD 1.49 to settle at USD 90.71 a barrel.

Stocks have given back 40per cent of their strong gains for the year since the end of July.

The main reason is a growing recognition that high interest rates will persist for a while as the Federal Reserve tries to knock high inflation lower.

That in turn has pushed Treasury yields to their highest levels in more than a decade.

The yield on the 10-year Treasury rose Monday to 4.67 per cent from 4.58 per cent late Friday. It's near its highest level since 2007.

High yields send investors toward bonds that are paying much more than in the past, which pulls dollars away from stocks and undercuts their prices.

Any relief rally from a compromise spending bill approved by Congress over the weekend, which has staved off a US government shutdown for another few weeks, appeared muted under pressure from heavy selling of bonds, which pushed yields higher.

“So, investors were on the fence, carefully considering the relationship between economic growth and interest rates and what actions the Federal Reserve might take in response to these factors,” Stephen Innes of SPI Asset Management said in a commentary.

Stocks that pay high dividends with relatively steady businesses are squeezed because investors are more likely to switch between stocks and bonds. That puts a harsh spotlight on utility companies.

PG and E dropped 5.6 per cent, and Dominion Energy sank 5.3 per cent for some of the sharpest losses in the S and P 500.

High interest rates also make borrowing more expensive for all kinds of companies, which can pressure their profits. High interest rates are designed to slow the overall economy and can cause disruptions in far-flung, unexpected corners of the economy.

The overall US economy has so far been holding up, defying predictions that it would have fallen into a recession by now.

In currency dealings Tuesday, the dollar fell to 149.85 Japanese yen from 149.86 yen. The euro rose to USD 1.0490 from USD 1.0480.

The dollar has gained in value against many other currencies as U.S. interest rates have risen faster than those in many other countries. Higher interest rates can mean higher yields for investments.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)