Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
The mood in equity markets is downbeat on account of the disappointing data posted by China overnight, in addition to that, the tick higher in government bond yields is hurting stocks too.
Strong earnings reports from banks increased investors' risk appetite, sending US stocks significantly higher, while the dollar and US
It is a mixed day for equities, as European markets are in positive territory, while the major indices in the US are showing losses.
Gold prices rose during today's trading, to reach their highest level since last Friday, around the levels of 1,768 dollars an ounce. This came as a result of market fears of increasing inflationary pressures, which led to a state of risk aversion, as US bond yields declined to increase the attractiveness of the yellow metal.
The mood in the markets is subdued following the excitement experienced last week. Traders are sitting on the sidelines today as they still don’t know what to make of last Friday’s US jobs report.
The FTSE 100 is outperforming the major indices in the eurozone thanks to its relatively large exposure to oil and gas stocks, such as BP and Royal Dutch Shell.
Stocks are enduring heavy losses today as a spike in government bond yields has sent a shock through the markets.
Stock markets in Europe and the US are in positive territory after a few days of losses. In recent sessions, traders have been preoccupied by fears of higher inflation, but today equities have rebounded.
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