Entering into US session, Yen remains the strongest one for today as markets are back in risk averse mode. Major European indices are all down. And more importantly, it should be noted that Japanese Nikkei closed down -2.39% or 0538.71 pts. Japan 10 year yield dropped -0.0142 to 0.069, a level we haven’t seen for months. These provided some solid risk aversion support to Yen.
Sterling reversed earlier losses and is trading as the second strongest one. It’s possibly limited by news that European Court of Justice’s advocate general said today that UK has the right to withdraw Brexit notice unilaterally, up to the point of formal conclusion of the deal. On other hand, Dollar is the weakest one on trade truce and falling treasury yields. Canadian Dollar and Swiss Franc followed.
In European markets at the time of writing:
- FTSE is down -0.83%
- DAX is down -0.69%
- CAC is down -0.69%
- German 10 year yield is down -0.018 at 0.29. It’s another sign of safe-have flow.
- Italian 10 year yield is up 0.014 at 3.155. German-Italian spread is below 300.
- WTI crude oil extends rebound, breached 54 and is now at 53.90
- Gold is pressing 1240 as rebound extends
Earlier in Asia:
- Nikkei dropped -538.71 pts or -2.39% to 22036.05
- Singapore Strait Times dropped -0.72% to 3167.79
- But Hong Kong HSI rose 0.29% to 27260.44
- China Shanghai SSE rose 0.425 to 2665.95
- 10 year JGB yield dropped -0.0142 to 0.069
