Longer-term yields soar as rates could stay high for longer

Equity markets

Equity markets rose in Asia, following the lead of the S&P 500 and Nasdaq on Monday and despite treasury yields soaring. The US 10-year treasury bond yield rose as high as 4.34%, its highest level in 16 years.

Softbank

SoftBank is having a second go at ARM's intial public offerring (IPO). After a first attempt last year due to objections from U.S. and European antitrust regulators, the chip designer disclosed the paperwork for an initial public offering that is expected to be the largest of the year.

ARM did not reveal the number of shares it is planning to sell or the valuation it will seek. But according to an earlier report from Reuters, SoftBank is planning to sell about 10% of Arm's shares, seeking a valuation of between $60 and $70 billion.

BHP Group

BHP Group posted overnight its weakest annual profit since 2020, as it finds itself squeezed between surging costs, a tight labour market, and the weakening of western demand for commodities. BHP's underlying attributable profit fell by 37% to $13.42 billion, missing the estimate of $13.89 billion. The miner declared a final dividend of $0.80 per share, down from $1.75 per share a year ago. Yet BHP remains confident, as it sees China and India as relative sources of stability for commodity demand.

It expects China, its main trading partner, to produce more than a billion metric tonnes of steel this year for the fifth year running. And when it comes to the weakening of the Chinese economy, BHP thinks it is too early to assess the impact of Beijing's policy measures on the country's housing market.

John Wood Group

John Wood posted a net loss of $27 million and increased its finacial year (FY) revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) guidance. Revenue is now expected to be around $6 billion.

Oil and gas overview

Shares in the oil and gas engineer plummeted back in May after the company announced that the £1.7 billion takeover bid by Apollo, which valued the company at 240 pence per share, had been dropped by the US private equity group.

Zoom

Zoom shares rose in extended trading as the group's earnings and sales topped expectations. Excluding items, the company posted a second-quarter profit of $1.34 per share, compared with a target estimate of $1.06. Revenue for the quarter ended July 31 rose 3.6% to $1.14 billion, above analysts' average expectations of $1.12 billion.

Zoom also raised its annual earnings and revenue forecast; it now sees $4.63 to $4.67 in adjusted earnings per share, up from $4.30, and $4.485 billion to $4.49 billion in revenue, up from $4.49 billion, for the full 2024 fiscal year.