Stock indices around the globe are struggling on the final session of the month and quarter as well as the US end of financial year , with fresh concerns about the Italian government which has just agreed to a budget that will see spending increase at a rate considered too fast by the EU. This has spooked the market already concerned about the huge amount of debt that Italy is already carrying and the sluggish growth it generates.
Markets were already shocked by some of the statements that Pres Trump had made over the past few days and it now looks like this may tip some of the markets into a correction phase. In the past few sessions we have seen the US Dollar begin to gain strength after an expected Fed rate rise and this has increased as investors take on defensive positions and sell out of risky assets. US bond yields have dropped from range highs early in the week as large scale buying of the bonds returns.
Crude oil has rallied on news that US stockpiles were reduced , and this is offset by word that Saudia Arabia is willing to increase production to help bridge any gap left by Iranian oil sanctions which the US is pushing.
Latest prices show :
Dow Jones 26398 down 40 / S&p500 2911 down 2 / Nasdaq at 8035 down 8.
EUR at 1.1577 down 65 / GBP at 1.3012 down 68 / JPY at 113.42 weaker by 6 / DXY at 94.93 up 40.
US10 at 3.03% / UK10 at 1.55% / DE10 at 0.46% / IT10 at 2.91%
In US data we have seen the core PCE index come in at 0.0% for September , down on the 0.1% expectation and just out the Chicago PMI was also out weaker than expected at 60.4 down from 62.6 expected.