- Stocks down, bond yields up.
- European Central Bank announces that it intends to raise rates in July.
- The dollar gains momentum after the start of the European session.
Stocks on Wall Street opened lower on Thursday, and in Europe they are falling more significantly, while bond yields are rising around the world.
Do the fears return?
After the opening, the S&P fell 0.68%, the Dow Jones 0.52% and the Nasdaq 0.93%. In Europe, the main markets fell by an average of 1.25%. The climate of caution returns due to the rise in the yields of sovereign bonds.
The European Central Bank (ECB) announced that it has left interest rates unchanged and will end the purchase program on July 1, as expected. He also indicated that he will raise rates by 25 basis points in July and then again in September (could be bigger). The president of the ECB expressed herself in favor of beginning with incremental rises in the interest rate.
The rrootings of bonds accelerated upwards tafter the ECB meeting. The German 10-year rate jumped to 1.46%, the new highest since 2014. US yields are also rising.
Despite this, EUR/USD is trading below the level it was at before the ECB meeting. The dollar is strengthening in a context of caution in the markets. Among the best performing currencies is the Swiss franc, which accelerated the rise after the ECB meeting and Lagarde’s press conference.
In the US, a rise in initial requests for unemployment benefits was known to reach a maximum in 20 weeks. In any case, continued orders remain at their lowest level since 1970 and the number of initial orders is still within levels compatible with a healthy labor market. Retail inflation data will be published on Friday in the US, which will be key ahead of next week’s Fed meeting.
The Petroleum it is falling moderately after the daily price rises. The barrel of WTI trades above $121.00, down 0.65%.
The Prayed and the silver They are trading in a bearish intraday trend, posting modest declines so far on Thursday. XAU/USD is just below $1850 and XAG/USD is at $21.90. Cryptocurrencies lost steam in the last hour. The Bitcoin trades at $30,150.
Technical levels
Source: Fx Street
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