Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
Stock markets have been relatively muted today. Yesterday, the disappointing US retail sales sparked fears the country’s rebound is faltering, which led to a fall in stocks, and that is why traders have been cautious today.
It has broadly been another bearish day for equities as a combination of Covid-19 concerns, tighter regulation in China, and disappointing data from the US, soured sentiment.
The worse-than-expected economic data from China overnight set the tone for the markets today.
Equity markets in Europe and the US continue to grind higher as the recovery story is still in circulation.
Volatility was low for much of the session as traders awaited the US CPI data, and then activity picked up on release of the announcement.
It has been an uneventful session today due to the absence of major macroeconomic news or corporate announcements.
European stock markets are mixed as traders lock in some profits that were achieved last week.
The US non-farm payrolls report was well received as the headline reading was 943,000, easily beating the 870,000 forecast. In addition to that, the June report was revised up to 938,000 from 850,000.
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