A measure of U.S. manufacturing activity weakened in June to a two-year low, and several regional Federal Reserve surveys indicated business activity shrank. Factory purchasing managers’ gauges across Asia eased, with South Korea, Thailand and India among those showing the biggest declines, according to S&P Global. .
“I would not rush in to buy anything blindly right now; I still think we are going to have some pains over the next couple of weeks and months as inflation starts to stabilize, ”Erin Browne, multi-asset strategies portfolio manager at Pacific Investment Management Co., said on the“ Bloomberg Surveillance ”show. .
Inflation-adjusted bond yields were negative for about two years, providing a key pillar of support for risk assets, which looked more appealing as a result. Their climb above zero has evaporated that positive backdrop, undermining equity valuations and threatening their relative attraction to bonds. .