- European stocks regain some poise
- Direction lacking as traders await clearer signs on inflation, bond yields
- Crude picks up again
European stocks edged higher early Wednesday after taking a sharp tumble in yesterday’s afternoon session. Bonds and the dollar rallied, leaving benchmark yields at their lowest in some months, knocking the wind out of the cyclical recovery trade. The FTSE 100 ended the day down 0.9 per cent at 7100 but has regained some poise in the early part of today’s session to trade at 7,130. European markets remain very much stuck in month-long ranges. Shell shares rose more than 2 per cent on a promise if higher shareholder returns.
Mega cap growth helped the US market keep a more level head as the S&P 500 declined 0.2 per cent, easing away from a record high set last week, whilst the Nasdaq rallied by almost the same amount. The Dow Jones fell 0.6 per cent as economically sensitive names like Caterpillar, Chevron, Home Depot and JPMorgan slipped. US 10yr yields are under 1.34 per cent this morning, a five-month low. Similar story for gilts, with the yield on 10yr paper at 0.627 per cent, the lowest since Feb.