Entering into US session, Yen stays in the driving seat as risk aversion intensifies in European session. While all major European indices are in deep red, we’d like to point out the free fall in German 10 year yield too. German 10 year bund yield is down -0.044 at 0.357, which is a rather serious sign of investor nervousness. It was over 0.5 just 10 days ago. Italian 10 year yield is up 0.039 at 3.529. That is, German-Italian spread is closing in 320 again.
Also, note that Japanese 10 year JGB yield also suffered steep fall this week.
Back to the currency markets, Dollar is trading as the second strongest for today. It’s partly supported by hawkish comments by new Fed Vice chair Richard Clarida, Trump’s new addition to Fed. Dollar will look into US Q3 GDP for strength for further rally. Commodity currencies are the weakest ones. But Euro and Sterling are actually not far away. Today’s market is rather one-sided on Yen and Dollar.
A quick snapshot at the European markets:
- FTSE is down -1.0%
- DAX down -1.51%
- CAC down -1.96%
- German 10 year yield down -0.044 at 0.357
- Italian 10 year yield up 0.39 at 3.529
In Asia:
- Nikkei dropped -0.40% to 21184.60
- Singapore Strait Times dropped -1.35% to 2972.02
- Hong Kong HSI dropped -1.11% to 24717.63
- China Shanghai SSE dropped -0.19% to 2598.85
