Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
Stock markets were rocked by the stronger-than-expected US CPI reading, the headline number was 8.3%, but economists were expecting 8.1%.
Traders are in risk-on mood once again as stocks, metals and oil are rallying. Tomorrow, the US CPI data will be posted, and economists are expecting a reading of 8.1%, which would be a fall from the 8.5% posted in July.
Traders are in risk-on mood even though yesterday there was a rate hike from the ECB and hawkish commentary from Jerome Powell.
Equity markets saw a lot of volatility today as the latest trade data from China added to worries about the health of the global economy.
Equity markets saw a lot of volatility today as the latest trade data from China added to worries about the health of the global economy.
European stock markets closed higher as they built on the rebound that began late last week. The rise in bond yields did not deter equity traders from their bullish move.
There was a burst of volatility when Jerome Powell delivered his speech and initially the US equites tumbled, and the US dollar rallied.
Equity markets have recouped some of the losses they endured earlier this week ahead of the Jackson Hole Symposium which starts today.
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