UK yields down sharply after more dovish BOEThe Major European stock indices are ending the day mixed. The German DAX which rose over 1.8% yesterday, consolidated/corrected it a little bit today.
- German DAX down -0.2%
- France’s CACdown -0.1%
- UK’s FTSE up 0.9%
- Spain’s Ibex down -0.6%
- Italy’s FTSE MIB Up 0.24%
- Portugal’s PSI20 up 0.26%
In the 10 year debt sector, UK fell sharply after a more dovish BOE. Other yields were little changed.
- German 0.372%, unchanged
- France 0.761%, unchanged
- UK 1.259%, -8.4 basis points
- Spain 1.486%, +1.1 basis point
- Italy 1.803%, unchanged
- Portugal 2.102%, unchanged
- Greece 5.09%, -17 basis points
In other markets as London/European traders look to exit:
- Spot gold is trading up $.58 or 0.4% at $1275
- WTI crude oil is trading unchanged at $54.30
- US yields are lower but off the lowest level. 2-year 1.612%, unchanged. 5 year 2.006%, -1.1 basis point. 10 year 2.3541%, -1.8 basis points. 30 year 2.8342%, -2.3 basis points
- US major stock indices are mixed in up and down markets today: S&P 500-2.24 points or -0.9%. NASDAQ composite index -10.1 points or -0.15%. Dow industrial average +35 points or +0.15%.
In the forex market, a snapshot of the strongest and weakest currencies shows the AUD is the strongest while the GBP is the weakest. Most of the trend action has been in the GBP after the BOE’s more dovish comments. All the major pairs show the GBP is weaker by -1.39% or lower (GBPAUD is down -1.88%).
Finally, bitcoin traded above $7000 for the 1st time ever but is trading just below that level at 6994.82 currently. The 200 bar MA on the 5-minute chart is at 6961.205. A move below it, should solicit more selling. Staying above keeps the bulls more in control (see 5- minute chart below).