Entering into US session, risk aversion remain the main theme in the financial markets today. It started with selloff in tech stocks in the US yesterday, and spread to Asia and Europe. Australian Dollar suffers and is trading as the weakest one despite relatively upbeat RBA minutes. Euro follows as the second weakest as German-Italian spread widens to above 320.
New Zealand Dollar, though, decouples from others commodity currencies and is trading as the strongest one. the Kiwi is followed by Swiss Franc and Yen, rather normal. Sterling is mixed as BoE Mark Carney’s inflation hearing provided nothing inspirational. There is also no special news on no-confidence vote on Prime Minister Theresa May yet.
In Europe, at the time of writing:
- FTSE is up 0.00%
- DAX is down -0.74%
- CAC is down -0.74%
- German 10 year yield is down -0.0117 at 0.364
- Italy 10 year yield is down -0.0062 at 3.595. German-Italian spread is now at 323.
Earlier in Asia, all major indices ended down:
- Nikkei dropped -1.09% to 21583.12
- Hong Kong HSI dropped -2.02% at 25840.34
- China Shanghai SSE dropped -2.13% to 2645.85
- Singapore Strait Times dropped -1.24% to 3026.99
- Japan 10 year JGB yield rose 0.0092 to 0.104, back above 0.1%.
