Asia shares subdued, bonds swamped by AI debt wave
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Asian shares slipped on Thursday as major tech companies sought billions in debt, causing market strain.
- ✓Nigel Green of deVere Group warned about the risks, saying, "The AI build out started on cash.
- ✓It's increasingly running on credit, and credit changes the risk profile entirely." Sovereign bonds also faced pressure.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
SYDNEY, Oct 8 (Reuters) - Asian shares slipped on Thursday as strains in sovereign bond markets were aggravated by reports some major tech companies were seeking to raise billions in debt in direct competition for limited funding.
A fresh rise in oil prices added to the pressure on Treasuries, though a strong auction of US 10-year debt overnight did help pull yields off 24-year peaks.
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While lofty yields underpinned the dollar, the euro slid to near 17-month lows as concerns over France's finances spread to Italian and Greek debt.
On Wall Street, S&P 500 futures and Nasdaq futures were barely changed. In Europe, EUROSTOXX 50 futures , DAX futures and FTSE futures all edged up 0.1% after sliding on Wednesday.
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Reuters
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