Equity markets lost its mojo after the US retail sales number came much lower than expected, in fact, it was the worst reading since 2009.
Stocks
- The S&P 500 Index plunged 0.54 percent as of 15:20 London time. The underwhelming US retail was the main reason for pessimism
- The Nasdaq 100 dropped 0.20 percent and the Dow Jones Industrial Average also fell by 0.64 percent.
- The Stoxx Europe 600 Index reacted to weak Eurozone GDP reading and fell by 0.30 percent.
- Germany’s DAX Index dropped due to the poor German GDP reading. It dropped nearly 0.61% percent.
- The MSCI Emerging Market Index also moved lower by 0.55% on a volume of 4.8M shares.
Currencies
- The Dollar Spot Index finally dropped today by 0.68% due to the weak US economic readings, the retail sales number fell came in at -1.8% vs forecast of 0.0%.
- The Euro jumped higher mainly due to the weakness in the dollar and the EUR/USD moved higher by 0.10 percent; the high of the day was $1.1310.
- The British pound dropped below a critical level of 1.28 against the dollar due to the Brexit chaos. It GBP/USD fell by 0.58%, the low of the day was 1.2775 and high of the day was 1.2878.
- The Japanese Yen came back as a risk off haven and jumped by 0.15 percent.
Bonds
- The yield on 10-year Treasuries sank by four basis points to 2.65 percent.
- Germany’s 10-year dropped four basis point to 0.09 percent.
- Britain’s 10-year yield also fell by four basis point to 1.195.
Commodities
- West Texas Intermediate crude dropped by 1.28 percent to $53.74.
- Gold failed to move higher because of the lack of any solid demand and moved lower by 0.26%. The support of $1,300 is under focus.
