Risk sentiments stabilized today. The sharp decline in US stocks yesterday triggered initial selling in Asia. But major Asia indices quickly found footing and reversed. Positive mood carried through to European markets. As a result, Yen and Swiss Franc turn softer, and Dollar follows. New Zealand and Australian Dollar rebound.
Euro is so far very resilient even though the European Commission finally declared that disciplinary action is warranted against Italy. It was lifted by rumors that Italian Salvini could compromise on the budget, but it’s then quickly denied. The Pound is mixed as UK PM Theresa May is set to meet European Commission President Jean-Claude Juncker on post Brexit political relationship.
For the week, Swiss Franc remains the strongest one, followed by Dollar and then Sterling. Australia, Canadian and New Zealand Dollar are the weakest.
In Europe, at the time of writing:
- FTSE is up 0.83%
- DAX is up 0.72%
- CAC is up 0.35%
- German 10-year yield up 0.016 at 0.371, still way off 0.4
- Italian 10-year yield is down -0.099 at 3.519. German-Italian spread is around 315.
Earlier in Asia:
- Nikkei closed down -0.35% at 21507.54, but
- Hong Kong HSI rose 0.51% to 25971.47
- China Shanghai SSE rose 0.21% to 2651.51
- Singapore Strait Times rose 0.39% to 3038.65
- Japan 10-year JGB yield dropped -0.0094 to 0.094, back below 0.1%
