Global Stocks Steady as Markets Take Pause in the Decline. Dollar Gave Up Part of Recent Growth

On Wednesday morning the markets are dominated by mixed dynamics. Political events in Europe have somewhat drawn attention from the U.S. debt markets and there is still pressure on the bonds.
Alexander Kuptsikevich
global stocks mixed

The stock markets take a pause in the decline after a few days of increasing pressure, but the yield’s growth of American bonds allows to talk about maintaining a negative trend.

According to the results of trading on Tuesday, the futures on S&P500 lost another 0.2%, increasingly depending on the peak levels of the beginning of October. However, on Wednesday morning the markets are dominated by mixed dynamics. MSCI Asia ex-Japan has hardly changed this morning. Shanghai index loses 0.2%, Hong Kong adds 0.3%.

The US dollar also gave in some of the positions conquered in the previous days. The dollar index lost 0.6% after touching highs for 1.5 months not without the help of the positive news from Italy and Britain. 

The Italian minister of economy promised to do everything that was necessary to ensure that the turbulence of financial markets would not spill into a financial crisis. It helps single currency to turn to growth from the levels near 1.1430 and it is trading below 1.1500 at the moment.

The British pound has added more than 1% over the recent 24 hours after the reports that the number of those who do not want to leave the EU without a deal in the parliament is growing, preferring “soft Brexit”. The GBPUSD pair rose to 1.3170, as the markets consider positively an increase in the chances of a deal between Britain and the EU. However, it is necessary to remain cautious, as in the previous months the markets had already made some false starts, hoping for an ambulance deal, but that ended by another one sale-off of the Pound. As it has often been noticed p in Europe in recent years, the decision has been postponed till the last moment, increasing uncertainty.


Suggested Articles


Political events in Europe have somewhat drawn attention from the U.S. debt markets and there is still pressure on the bonds. The yield of 10-year bonds updated 7-year highs, exceeding 3.25% level. The yield of 2-year notes rose yesterday to the maximum in 11 years. This is a natural process amid the increased Federal Reserve rates and increased confidence in the U.S. Economy. However, the yield growth negatively affects the attractiveness of the stock markets, where the U.S. stock indices depart from the historical highs, and in bourses in China have entered the Bear market phase.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US