Down across the board

The European major indices have slid lower in trading today:

  • German Dax fell -0.6%
  • France's CAC fell -0.4%
  • UK's FTSE fell -0.6%
  • Spain's Ibex fell -1.5%
  • Italy's FTSE MIB fell -1.3%
  • Portugal PSI20 fell -0.60%

In the benchmark 10 year notes, the Italian yields rise on risk off. The Italian to German yield spread hit the highest level in 5 years. The yields in Italy are also at 3 month highs.

In addition to "risk off" (the TRY is tumbling again), the market is worried about Italy's rating review on Friday.

So there is a flight into the safety of Germany, UK and France and exit out of Italy, Portugal and a lesser extent, Spain debt instruments.

In other markets:

  • Spot gold is down -9 points or -0.31% at $2905.34
  • WTI crude is up $0.29 at $69.80

In the US stocks, the snapshot shows:

  • the S&P indexes down -8.5 points or -0.29% at 2905.50
  • The NASDAQ is down minus 9.1.4 -0.11% at 8100.60
  • The Dow is down -111 points or -0.42% at 26012.66

US yields are lower across the board on the flight to safety bid in US debt

IN the forex market in the NY session, the JPY has continued to move higher (it was the strongest earlier in the day too). The USD has also moved higher but not vs the JPY (JPY is still the king). The NZD has recovered a bit (see earlier report).