A look at the coming day in European and worldwide markets of Tom Westbrook
American shares have finally overtaken at night with which currency and bond markets have been saying for a few weeks: a delay is coming.
The decrease in the 4% of the Nasdaq was his steepest in two and a half years. The bond returns fell sharply and the markets now praise in a likelihood of approximately 50-50 of the FED recipient rates in May.
Tesla shares have been halved since their peaks after the elections and the dollar, which had risen in anticipation of Donald Trump’s policy, has now started sliding while he draws rates on his neighbors.
The so -called “Trump Trade” is in full retreat and the “Trump Put”, or the expectation that it may be sensitive to the fall on the stock market is not so far nowhere to be seen.
Citi has reduced its recommendation from the American assets and reduces shares to “neutral” reduced “overweight” after the market was closed, and said that it is at least not clear for the coming months that the outperformance of the US economy can continue.
Asian markets did their best to stabilize the ship a bit helped because it is everywhere outside the US that benefits from repatriation flows of dumped American assets.
Stocks in Tokyo, Seoul, Hong Kong and Sydney were of their early lows by noon, but the mood was shorter. American stock futures also fell in early trade and, while repairing their losses, struggles to make a lot of progress than flat. [MKTS/GLOB]
The scene on currency markets was quiet. The yen has been rising for weeks and has risen to a new peak of five months in the Asian session – although, as some dealers noted, the shares that caught up in the movement in dollar/yen instead of the other way around.
The euro has also shown little reaction to the greens of Germany who promise to block plans for increased military expenditures, perhaps pending a compromise agreement.
Important developments that can influence the markets on Tuesday:
Income: Volkswagen, TP ICAP
Economy: American shocks
(By Tom Westbrook; adaptation by Edmund Kllamann)
