Draghi and a lower EUR is sending bond yields lower but stocks higher
The comments from Draghi has helped to send the EUR lower, yields lower in Europe and Europe shares higher:
- German Dax rose 1.8%
- France's CAC rose 1.6%
- UK's FTSE rose 1.1%
- Spain's Ibex rose 0.6%
- Italy's FTSE MIB rose 1.2%
- Portugal's PSI 20 bucked the trend and fell -0.1%
In the 10 year note sector:
- Germany, 0.425%, -5.7 basis points
- France 0.763%, -7.9 basis points
- UK 1.334%, -3.5 basis points
- Spain 1.356%, -5.5 basis points
- Italy 2.749%, -5.6 basis points
- Portugal 1.925%, -2.2 basis points
The lower yields have helped to push US yields lower as well and a flatter yield curve at a NY midday:
- two-year 2.569%, +0.2 basis points
- 5 year 2.817%, -1.1 basis points
- 10 year 2.949%, -1.6 basis points
- 30 year 3.068%, -1.7 basis points
The US broad indexes are higher, but the Dow is lagging and down a touch.
- S&P index +8 points or 0.29% at 2783.5
- NASDAQ index of 61.75 points or 0.8% at 7756.50
- Dow down 10 points or -0.4% at 25190.70
In the forex market, the USD is king today. The EUR is the dog. The JPY is running behind the USD as the JPY crosses tumble lower. The CHF is lagging behind the EUR but still lower on the day.
In other markets:
- Gold is not following the higher USD. Typically, if the dollar goes higher, gold goes lower. Gold is up about $5 or 0.38% at $1304.27
- WTI futures are trading down $.10 or -0.15% at $66.54. The Pirates $67.16 the low extended to $66.36
- Bitcoin on Coinbase is having some modest relief today. It is up $106 at $6359, but is currently below the April 2018 low price of $6450. The high today did extend above that level to $6540, but could not sustain any momentum higher. The low price today extended to $6240. That was the lowest level since February 6 when the market price tumbled to a low of $5873. PS yesterday Bitcoin close at the lowest level since November 2017
