German DAX down over 2% on the day

The European shares are ending the session was sharp declines. The fall was led by an over 2% decline in the German DAX. The provisional closes are showing:

  • German DAX, -2.08%
  • France's CAC, -1.53%
  • UK's FTSE, -1.04%
  • Italy's FTSE MIB, -0.86%
  • Spain's Ibex, -0.80%
  • Portugal's PSI 20, minus

Yields in the benchmark 10 year note sector showed mostly declines. However, Italian BTPs saw investors fleeing on the back of the EU commissions request for Italy to have a do-over for their budget. Italy said, they have no Plan B. That makes for an impasse. 10 year yields in Italy climbed 10.1 basis points to 3.591%.

In other markets as London/European traders look to exit for the day:

  • Spot gold is up $11.78 or 0.96% at $1233.82. That has come off highs for the day at $1240. 07.
  • WTI crude oil futures are down $2.48 or -3.56% at $66.90. That is near the lows and below the 200 day MA at $67.39 (see post here)

US stocks have rebounded off of lower levels but still are down over 1.8%

  • S&P index -49 points or -0.78% at 2706.98. The low reached 2691.43
  • NASDAQ composite index down 148 points or -1.90% at 7321.54. Below reach 7260.
  • Dow is down -434 points or -1.72% at 24884. The low reached 24768.79

US yields are lower and the 2-10 year spread is flatter by -2.2 bps at 26.79 basis points

In the forex market, the JPY is the strongest, while the NZD is the weakest. The USD is mostly lower but is higher vs. the NZD and AUD on the "risk -off" sentiment. The GBP lost some of the earlier gains at the start of the North American session.

Most of the activity is in the GBP and the JPY pairs. The EURUSD has a relatively modest 54 pii trading range. The USDCHF, USDCAD, AUDUSD and NZDUSD have ranges less than 39 pips.