Investing.com - Here are the top five things you need to know in financial markets on Tuesday, July 11:
1. Ethereum, Bitcoin crash amid bubble talk
Prices of Ethereum and Bitcoin extended their recent declines, remaining under pressure amid ongoing chatter of a cryptocurrency bubble.
Ethereum prices dropped by around 25%, or $60.00, at one point to a low of $175.56, its weakest level in more than a month. Prices are down almost 55% since peaking at an all-time high close to the $400-level in mid-June.
Bitcoin lost about 8% as investors remained wary of initiating large position amid several warnings from analysts that the digital currency has peaked since hitting $3,000 last month.
Other prominent cryptocurrencies such as Litecoin and Ripple also felt the pressure.
2. Global bond sell-off resumes as investors await Yellen testimony
Global bond prices were under pressure again, pushing yields back towards multi-month highs, as investors continued to factor in the shifting outlook for monetary policy around the world.
Germany's benchmark 10-year bond yield gained 2.1 basis points, or around 4%, to 0.56%, not far from last week's 19-month high of 0.58%. France’s equivalent yield rose 2 basis points at 0.922%.
On the other side of the Atlantic, U.S. 10-year Treasury yields crept up 2.0 basis points to 2.391%, within sight of last week's two-month peak of 2.398%.
Yields across the globe have been spiking higher lately amid hawkish rhetoric from key central bank officials in Europe and North America.
3. Dollar finds support with Fed speakers in focus
The dollar notched a four-month high against the yen, as investors awaited testimony from Federal Reserve Chair Janet Yellen for fresh cues on policy direction.
The dollar rose to 114.29 against the Japanese currency, after touching 114.48 in overnight trade, its highest level since mid-March.
Yellen is scheduled to testify on the economy before the Senate Banking Committee on Wednesday. She will then appear in front the House Financial Services Committee on Thursday.
San Francisco Fed President John Williams said Tuesday in Sydney that it was a reasonable view to expect one more rate hike this year, and his own view was to start adjusting the central bank's balance sheet in the next few months.
Later in the day, Fed Governor Lael Brainard was due to speak in New York.
Futures traders are pricing in around a 50% chance of a hike by the end of the year, according to Investing.com’s Fed Rate Monitor Tool.
4. Oil prices retreat; API supply due later on
Oil futures reversed overnight gains to trade lower as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.
Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (2030GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of around 3.2 million barrels.
U.S. crude was at $44.13 a barrel, down 26 cents, or around 0.6%, pulling back from a session high of $44.91. Brent oil lost 29 cents to $46.62 a barrel.
Reports that Libya and Nigeria may be asked to cap production in a bid to reduce a global supply glut propped up prices earlier.
5. Amazon shares rise as Prime Day kicks off
Amazon.com (NASDAQ:AMZN) shares were higher in pre-market trade, as the world's largest online retailer's own version of Black Friday kicked off.
Prime Day, a 30-hour sale which started at 9:00PM ET Monday (0100 GMT Tuesday), is Amazon's biggest marketing push of the year, with deals to draw new subscribers to its Prime shopping club.
Amazon shares closed up 1.8% at $996.47 on Monday.