Yields on 10-year US Treasuries have inched up to above 4.3 percent this week, the highest since early July, indicating that market participants are increasingly counting on more limited rate cuts from the Federal Reserve.

The higher rates, which hurt company earnings and deter investors from taking money out of savings accounts to invest in the stock market, could also reflect unease about the deficit spending plans of both candidates in next Tuesday’s presidential elections, said Joe Mazzola, a strategist at Charles Schwab.

“The relentless climb in Treasury yields continues and threatens to overshadow any news, good or bad, on the earnings front,” he said. 

Alphabet reports earnings after the market closes and many investors are awaiting to hear what the Google-parent has to say before taking any bets.

“When a mega-cap stock reports earnings, the stock market pays extra attention not only to the report itself, but also to any guidance,” said Patrick O’Hare, an analyst at Briefing.com.

In total, five of the “Magnificent Seven” US tech giants will report this week, including Amazon, Apple, Facebook-parent Meta, and Microsoft.

On the economic front, the US government will release third quarter GDP growth estimates Wednesday, as well as inflation data Thursday and the closely watched monthly labour market report Friday. 

Together, they should provide more clues about the health of the world’s largest economy and the direction of its Fed’s interest rate policy.

Major European stock markets were lower in mid-afternoon trading while Asian markets ended mixed. 

London shed 0.5 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses. 

Adidas shares were up more than 2 percent in Frankfurt after the sportswear giant again raised its full-year revenue outlook.  

Oil prices recovered some of Monday’s losses after the US government said it would add to its Strategic Petroleum Reserve. Crude prices had tumbled at the start of the week on relief that Israel’s weekend strikes on Iran spared the country’s energy infrastructure. 

Bitcoin rose above $71,000 to levels last seen in June on expectations that Donald Trump, who has sought the support of the crypto-currency world, will win next week’s elections. 

“Trump’s campaign appears to be building upside momentum, and that’s going down well with the crypto bros,” said David Morrison, analyst at Trade Nation. 

In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.

Japanese shares built on the previous day’s gains as cheaper oil and the weaker yen outweighed uncertainty after Japan’s ruling coalition fell short of a majority in Sunday’s general election.

Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.

Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.

The People’s Bank of China on Monday rolled out a new lending tool to inject liquidity into the market.

New York – Dow: DOWN 0.4 percent at 42,212.88 points

New York – S&P 500: DOWN 0.4 percent at 5,802.82 

New York – Nasdaq Composite: DOWN 0.2 percent at 18,524.18 

London – FTSE 100: DOWN 0.5 percent at 8,247.49 

Paris – CAC 40: DOWN 0.2 percent at 7,544.29

Frankfurt – DAX: DOWN 0.2 at 19,485.94

Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)

Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)

Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)

Euro/dollar: DOWN at $1.0783 from $1.0815 on Monday

Pound/dollar: DOWN at $1.2970 from $1.2972

Dollar/yen: UP at 153.70 yen from 153.24 yen

Euro/pound: DOWN at 83.12 pence from 83.37 pence

Brent North Sea Crude: UP 0.7 percent at $71.95 per barrel

West Texas Intermediate: UP 0.8 percent at $67.89 per barrel