Bond yields pull down the BUX and Wall Street

In brief

• The BUX fell 1.65% to 141,308.07; OTP lost 3.79%, while Richter gained 1.05%.
• The DAX dropped 1.35%, the Euro Stoxx 50 1.47%, the CAC 40 1.22% and the FTSE 100 0.80%.
• The S&P 500 declined 0.22%, the Nasdaq Composite 0.22% and the Dow Jones Industrial Average 0.66%.

Budapest and Europe

In regular trading on the Budapest Stock Exchange on 7 October, the BUX lost 2,374.48 points, or 1.65%, to close at 141,308.07 on equity turnover of HUF 36.9 billion. OTP fell 3.79% to HUF 39,900, MOL 0.40% to HUF 5,035 and Magyar Telekom 1.24% to HUF 2,540; Richter rose 1.05% to HUF 12,500. The final Hungarian figures were reported by a close report based on BSE data.

In Europe, the DAX fell 1.35% to 25,104.36, the Euro Stoxx 50 lost 1.47% to 6,180.29, the CAC 40 dropped 1.22% to 7,769.21 and the FTSE 100 declined 0.80% to 10,457.38. Rising long-term bond yields weighed on European bank shares; the co-movement indicates direction, not a single proven cause.

Wall Street and the next decision

The S&P 500 fell 0.22% to 7,801.77, the Nasdaq Composite 0.22% to 27,538.69 and the Dow Jones Industrial Average 0.66% to 51,179.87. The Associated Press close summary reported the same direction and closing levels.

The Federal Reserve minutes said that “another increase in the target range for the federal funds rate would likely be appropriate by year end”. Through US yields and foreign-exchange markets, that assessment can also affect the forint and the risk pricing of Hungarian shares. Related reading includes the previous close review and our analysis of Hungarian inflation. The next verified event is the Fed meeting, which begins on 27 October and concludes on 28 October; this article is not personalised investment advice.