A rough start to the day for stocks
European indices are seeing losses of around 1.3% to 1.7% on the day currently and US futures are also slumping to fresh lows as the market continues to grapple with rising yields and inflation fears amid the energy crisis and supply bottlenecks.
Of note, the DAX is seen falling past key technical support from its 200-day moving average and that puts the focus on the May lows as the next key line of defense:
Elsewhere, the dollar is leading gains across the board in FX as it stretches its advance with EUR/USD slumping to its lowest since July 2020 at 1.1559 currently.
It sure seems like the market is starting to get a grip on what rising (and perhaps persistent) inflation could mean for risk trades as the energy crisis exacerbates the already worsening macro backdrop from supply and capacity constraints.
