Markets
Stock markets guided global trading yesterday in an emotionless session. European stock markets opened rather weak in line with WS’s performance on Tuesday and failed to overturn those losses throughout the day. They eventually closed around 0.75% weaker. The EuroStoxx50’s revival since early May is showing more and more signs of fatigue. The downbeat mood in Europe caused risk aversion, benefiting core bonds and the dollar. The German yield curve bull flattened with yields losing 1.6 bps (2-yr) to 4.9 bps (30-yr). US yield changes ranged from flat (2-yr) to -7.2 bps (30-yr). The intraday rebound in core bonds topped out during US dealings as risk sentiment improved after opening losses for WS. Main US indices eventually gained almost 1%. A similar dynamic was at play for dollar crosses. The trade-weighted greenback (DXY) tested first resistance at 102.73 during European hours, but improved risk…
