The dollar remains stable, while risk remains on the lower side.
Despite more protective risk tones early on, the market remained reasonably calm throughout the session, as tech stocks were affected by additional negative sentiment from a return of the China selloff, as well as Amazon earnings, which underwhelmed.
Nasdaq futures fell as high as 1.4 % , but have now recovered to about 1.0 % as we head into North American trade. However, risk-aversion remains prevalent, with European indices falling 0.5 % to 1.0 % on the day.
Treasury rates have also continued to fall but have not broken out of the middle range this week, with 10-year yields down around 1.24 % to 1.25 % in European trading.
Eurozone Q2 figures showed a greater rebound than predicted, while July inflation surpassed the ECB’s target of 2%, albeit mostly due to rising energy prices.
FX played by its own game though as the dollar held steadier throughout with some pushing and pulling. EUR/USD moved up from 1.1885 to 1.1910 before settling back near unchanged levels now with large expiries capping the move at 1.1900.
GBP/USD moved up from 1.3950 to 1.3980 before paring that advance to flat levels now as the dollar finds some footing in what still looks to be its worst week since May.
The aussie and kiwi are remaining lower amid more defensive risk tones, with the former seeing a push near 0.7400 before falling down to 0.7365 as Australian PM Morrison announces a high vaccination bar before easing international borders.
Markets News :
- EUR leads, AUD lags on the day
- European equities lower; S&P 500 futures down 0.6%
- US 10-year yields down 3 bps to 1.239%
- Gold flat at $1,827.24
- WTI down 0.1% to $73.52
- Bitcoin down 2% to $38,887