European markets continue to be on the defensive after the large scale selling in the Turkish stocks and currency early in the week. Emerging markets around the globe have been in the spotlight with the strong USD and rising US rates continuing to put pressure on any sign of a weak economy. The Turkish market bounced mid week as the central bank placed a limit on how much the local banks can sell the Lira and some investments pledged by Qatar in the Middle East. However this morning we see the TRY back over the 6 level and European banks under selling pressure again.
Latest prices are Dax at 12203 down 7 , the CAC at 5338 down 10 , the MIB at 20312 down 272 , and the FTSE showing a little strength at 7548 up 6.
In the FX markets we see the EUR at 1.1379 flat , the GBP at 1.2703 down 9 , and the JPY at 110.55 stronger by 35. The DXY is at 96.40 down 14 , but still in uptrend. Gold remains under pressure at 1176.90 up 3.00 and the Brent Oil futures is at 72.00 up 55.
Bond yields have moved lower on safe haven buying with US10 at 2.85% , the UK10 at 1.21% , the DE10 at 0.30%.
Euro zone inflation was released earlier at 2.1% y/y above the ECB target level of 2.0%.