Wall Street slumped on the back of mid tier bank downgrades overnight with European stocks following suit as German inflation remained persistently high, with some dovish comments from Fed officials failing to support risk taking. Currency markets are failing to push back against USD strength with the Australian dollar almost cracking below the 65 cent level.
US bond markets saw a small drop in yields with the 10 year Treasury almost crossing below the 4% level while oil prices remained elevated after a volatile session as Brent crude stayed above the $86USD per barrel level. Gold failed to turn its short term reprieve following Friday’s NFP print into anything sustainable and fell sharply back to the $1925USD per ounce level.
Looking at share markets in Asia from yesterday’s session with Chinese share markets initial fell sharply on the open but recovered most of the losses by the end of the session with the Shanghai Composite down 0.2% to remain below the 3300 point level while in Hong Kong the Hang Seng Index wasn’t able to fill in, closing down 1.8% to 19184 points.
The full text of this article is available to MacroBusiness subscribers