Stocks Retreat As Traders Move Away From Riskier Assets

Stocks Set To Open Lower As Yesterday’s Sell-Off Continues

S&P 500 futures are down by about 1% in premarket trading as traders focus on inflation risks. Today’s inflation reports from EU and UK were mostly in line with the analyst consensus but markets remained nervous.

Interestingly, the trading action in bond markets is mostly calm, and the yields of 10-year Treasuries are up by just 1% today.

It looks that investors continue to move their money out of tech stocks, and Nasdaq futures are down by 1.5% in premarket trading. I’d note that Nasdaq futures are already close to recent lows near 13000, and a move below this level will likely trigger an additional sell-off.

Crypto Market Suffers A Major Sell-Off After China Bans Financial Firms From Crypto Business

It’s a tough day for crypto market enthusiasts as all major cryptocurrencies are deep in the red. Bitcoin is down by more than 10% while Ethereum is down by about 23%. The recent high-flyer Dogecoin has already lost 25% of its value in just one day.

China decided to ban its financial firms from crypto business, triggering a major sell-off in the crypto market. I’d also note that cryptocurrencies served as a decent indicator of investors’ risk appetite in recent months as they are one of the most risky investments available.

The general market sentiment has recently became more bearish due to inflation worries, and investors’ move out of the riskier assets is especially visible in the crypto market.

Oil Moves Lower On Worries About Iran Nuclear Deal

Recent reports indicated that U.S. and Iran made progress on the road to a nuclear deal. If U.S. lifts sanctions on Iran, Iran will immediately increase its exports of oil which will be bearish for the oil market.

In addition, the oil market is worried about the situation in Malaysia, where the number of new reported COVID-19 cases continues to increase. Malaysia’s problems may signal that Indian variant of coronavirus is spreading to other Asian countries, which is a worrisome development for oil bulls.

For a look at all of today’s economic events, check out our economic calendar.