Stocks Steady With Bond Yields; Brent Near 65

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Stocks and bond yields steadied as investors digested the implications of a runup in borrowing costs that had pushed them to their highest level in a year. Crude oil and copper jumped. European shares opened flat, with miners and tech stocks leading gains in the Stoxx Europe 600 index. SP 500 futures retreated after the index closed flat. Brent oil briefly jumped above 65 a barrel, a prepandemic high, as a cold blast thats taken out almost 40 of U.S. crude production morphed into a global supply shock. Airbus shares fell as much as 4.6, after reporting results that were strong but guidance that disappointed.

Concerns are mounting that bond yields near the highest level since the early days of the pandemic could spoil the stock rally. The question of how high borrowing costs can go before they become a drag on corporate profits and the economic recovery is weighing on markets and stoking volatility. Still, with vaccines being rolled out and economic activity picking up around the world, investors continue to bet on share market gains while shifting more into cyclical stocks.

While some recent data highlighted momentum in the U.S. economy, Federal Reserve officials didnt see the conditions for reducing their massive assetpurchase program being met for some time at their January policy meeting, a record of the gathering released Wednesday showed.

Stocks

Futures on the SP 500 Index decreased 0.3 as of 835 a.m. London time.The Stoxx Europe 600 Index climbed 0.1.The MSCI…

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