The global financial markets seem to have taken ECB’s dovish turn rather negatively. Instead of cheering prolonged low interest rate environment and cheap loans, investors take the warning that the worst is yet to come. At the time of writing, DOWN is down nearly -200 pts while Europe indices all closed in red. Bond yields suffered steep decline as German 10-year yield hit as low as 0.063 so far, lowest since at least the start of 2017. And, it hit as high as 0.210 just on March 1.
In the currency markets, Euro is no doubt the biggest loser. EUR/USD’s break of 1.1215 support now indicates resumption of medium term down trend from 1.2555. The common currency also drags down Sterling and Swiss Franc. Meanwhile, Yen is the strongest one, with help from risk aversion as well as falling global yields. Canadian is surprisingly the second strongest for today. But the Loonie is just paring some of yesterday’s steep loss.
In the US:
- DOW is down -0.81%.
- S&P 500 is down -0.55%.
- NASDAQ is down -0.53%.
- 10-year yield is down -0.038 at 2.654. It kissed 2.7 handle goodbye earlier this week.
- 30-year yield is down -0.031 at 3.040, still holding on to 3.0 handle.
In Europe:
- FTSE closed down -0.53%.
- DAX closed down -0.60%.
- CAC closed own -0.39%.
- German 10-year yield is down -0.0615 at 0.067.
