Daily Market Color

Risk Off Sentiment Pushes Equities and Global Bond Yields Lower

The markets giveth and they taketh away.  After a solid recovery in March from the depths of the February swoon, April is kicking off firmly to the downside.  Oil and gas prices are grinding lower with WTI Oil back down to $35.50, after trading above $40 briefly in mid-March.
Comments made today by IMF head Christine Lagarde regarding potentially slower global growth contributed to the market’s negative sentiment.  Also contributing was a weaker than expected report released on German Factory Orders for February.  10 year German Bund rates dropped back to a yield of 0.08% (down from 0.63% at the end of 2015) matching its cyclical low yield touched back in April 2015 while the German DAX Index is down 2 1/2% for the day.

All three major US stock indexes are opening about 1% lower this morning. Gold is rallying with the safe haven push, while most Ags and Energy prices are lower.  The U.S. Dollar is opening higher against most major currencies except the Yen. Treasury yields and U.S. swap rates are down 3-5 basis point across the curve today, with 10 year yields down 20 basis points in the last 10 days.

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