Volatility is sharply higher in European markets today as weakness in the Turkish and Russian currencies flowed into more mainstream European markets. Concern from the ECB about financial exposure to the Turkish economy from some of Europes banks BBVA (Spanish) Unicredit (Italian) BNP Parisbar (French) has seen the EUR weaken sharply and stock indices fall . Sanctions placed on the Russian economy by the US has caused some further volatility in Russian markets and hurt investor sentiment even more.
Latest prices have the FTSE at 7687 down 54 or 0.71% , the DAX at 12482 down 189 or 1.50% , the CAC at 5440 down 61 or 1.12% , and the MIB is at 21286 down 345 or 1.60%.
In the FX markets the US Dollar has increased sharply against EM and DM currencies with the exception of JPY - seen as a safe haven. The EUR is last at 1.1468 down 0.51% , the GBP is at 1.2776 down 0.36% and still weakening on Brexit concerns , and JPY at 110.98 , stronger by 0.10%. Gold remains near previous lows at 1210 and Brent crude oil is last at 72.18 remaining near recent lows.
Bond yields have fallen as investors fret over future economic growth and inflation with US10 at 2.90% , UK10 at 1.27% and GE10 at 0.35% all lower by 2-3 points.
US CPI inflation numbers are main economic data focus tonight. Out at 10.30pm AEST the expectation is for a headline number of 3.0% y/y and core CPI at 2.20% y/y.