- European stocks continued to decline on Tuesday as investors keep wondering whether the panic has passed. On the other hand, the UK's better than expected yearly inflation data also supported selling by increasing the chance of higher interest rates. Therefore, the European benchmark index STOXX 600 lost strength by 0.6% to 370.58 euro. Energy and telecom companies were among the most sold stocks. At the end of market session, Germany's DAX 30 declined by 0.70%, France's CAC 40 slid by 0.60% and UK's FTSE 100 decreased by 0.13%.
- The decline in the stock markets triggered demand for safe havens, where Germany 10-Year government bonds' rates declined by 1.34% to 0.739%. EUR/USD parity continued to its trend in the green area, as the dollar lost ground against the euro. The equality increased by 0.29% to 1.2352$.
- The volatility in European stocks shows that investors are still cautious about the future of the stock market.
- Wall Street seems to be doing ok as benchmark indices inclined. An increase of 0.16% is seen in the Dow Jones Industrial Average, 0.26% in S&P 500 and 0.45% in NASDAQ Composite. So far, major indices are still down about 7% from last month's levels.
- Despite the gains on stocks, the US dollar index continues to lose strength globally by 0.26% to 89.47$. 10-years government bonds rates also slid 0.82% to 2.817, which shows that the panic is not over yet.
- This morning a mixed trend took over in Asian markets. Indonesia, Australia, Shanghai and Japanese indices are declining, while other indexes continue their route on the green area.
- The dollar keeps losing power against the yen by 0.60% to 107.17. Samurai bonds rates also declined about 4.41% to 0.065%.
- Global panic and the new crisis between Greece and Turkey, with the European Union announcing it will back Greece, supported the sell off in the Turkish market. Today, we expect a negative opening in BIST 100, with increasing USD/TRY and EUR/TRY.
- Precious metals reversed their trend. This morning, XAU/USD increased by 0.40% to 1.334,74$ and XAG/USD by 0.47% to 16,649$.
- If German and the US yearly inflation data comes in at better than expected levels, the uptrend of currencies and precious metal could continue to seek higher levels.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.