An Overview of Today’s Market
After three days of losses, dollar has been able to bounce back as the treasuries have regained their position before the U.S. employment data. The stocks in Europe have dropped as a bond sell-off has spread across the continent.
Stoxx Europe 600 Index dipped for the fifth day which happens to be the longest streak calculated since November. The main cause of the dip is big names like BT Group Plc and Deutsche Bank AG fell down showing disappointing results.
Not only that, futures on the S&P 500 slipped as well. The Bund yields have reached a two-year high as the core European bonds dropped. The pound and euro weakened as well. The yen declined and Japanese debt has gained after the intervention of Bank of Japan to curtail the rise in the rates.
DAX from Germany posted its yearly gains resulting in capping the worst weekly decline to occur since 2016.
Traders have their eyes glued to the U.S. jobs data that might be successful in supporting both stocks and bonds if the trend of growth in hiring along with low wage inflation carries on. The equities are being experimented with by the rise in bond yields while some of the fund managers suggesting a bond bear market with 3% U.S 10-year rates. This is being noted as potential driver for correction in equities by numerous experts of the stock market.
Oil has also slipped down but in New York, it is trading close to its highest level since 2015. Bitcoin has suffered terribly in January and kept dipping falling below $8,000.
The main moves of the stock market are as follows:
- S&P 500 Index dropped by 0.1%.
- Stoxx Europe 600 Index fell 0.9%, hitting the lowest in a month with fifth consecutive fall.
- MSCI Asia Pacific Index dropped down by 0.7%.
- Hang Seng Index of Hong Kong dropped 0.1%.
- Topix Index fell by 0.3%.
- Kospi Index dropped 1.7%.
- DAX Index of Germany fell 1.3% and hit its lowest in over four months.
- FTSE 100 Index of U.K. dropped 0.3% to its farthest down in seven weeks.
- Australia’s S&P/ASX 200 Index rose 0.5%.