- After the significant correction, the markets seem to be continuing their upward trend with increased risk appetite.
- On Monday, the European benchmark index STOXX 600 extended its gains by 1.17% to 372.93 euro. So, France's CAC 40 increased by 1.20%, Germany's DAX 30 by 1.45%, U.K.'s FTSE 100 by 1.19% and Italy's FTSE MIB by 0.77%. European companies' better-than-expected data supported the gains in the European markets.
- EUR/USD parity also inclined by 0.15% to $1.2311 with the announced European companies' data. With the increased risk appetite, Germany 10-Year government bonds' rate declined by 0.13% to 0.755%.
- The continuation of the increased risk appetite is also seen in the Wall Street. Dow Jones Industrial Average increased by 1.70%, S&P 500 by %1.39%, NASDAQ Composite by %1.56 and NYSE by 1.24%.
- However, the US Dollar Index continues to lose its strength. The index declined by %0.20 to 90.03$. On the other hand, US 10-Year government bond rates also decreased by 0.13% to 2.851%.
- It seems that the panic on the stocks passed. However, investors will be focused on the UK, EU and USA inflation data. If the data comes in better than expected, then the central banks will be more aggressive in ending their QE programs and interest rates will go up more quickly.
- This is the one of the reasons why the S&P 500 VIX moves around $25.61 and CBOE OEX Implied Volatility continues to be traded at $21.09.
- After the first day of the week, we see that increased risk appetite takes over Asian markets where Japan indexes are the only ones to decline.
- The declined USD supports the decrease in the USD/JPY pair which lost strength by 0.35% to 108.28 yen. 10-Year Japanese government rate also lost power by 4.23% to 0.068%.
- We expect an optimistic day for BIST 100 where an uptrend will take over the day. USD/TRY also lost ground by 0.09% to 3.7967 TRY. On the other hand, EUR/TRY continues in the green area at 0.05% to 4.6745 TYR.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.