Investors remain cautious and a bit shell shocked after the relentless selling during the month of October continued in Fridays session with new lows being made in all indices. Today we have seen some moves to push the indices higher but the general technical picture now is negative but maybe due for a bounce. A large takeover launched by IBM in the cloud computing sector will help sentiment and with limited earnings numbers out today then we may see further moves higher.
One market that has benefited from the increased volatility is the US dollar which has moved higher since the middle of September and is now approaching the August high , with the relative strength of the US economy compared to Europe or the UK and the level of bond yields it should continue to move higher.
Bond yields have moved back into a lower range after the US10 yields peaked at 3.26% , and it is now down to 3.09%. Compared to DE10 at 0.38% and JP10 at 0.06% , it really is a clear decision.