Investors continue to flee stocks across the globe as there doesn’t seem an end in sight for the recent market turbulence. The sell-off has been triggered by the recent rise in Treasury yields.
However, the benchmark 10-year Treasury note has recently declined. Despite that investors are still dumping risky financial assets for defensive stocks and bonds. Accordingly, the downdraft in the market will continue until the market holdouts capitulate.
Asian stocks fell hard today across the board. A couple of the notable moves across Asia today:
- Japan’s NIKKEI 500 Index dropped 3.45%;
- The Shanghai Composite Index tumbled a hefty 5.33%;
- Hong Kong’s Hang Seng Index is down 3.54%;
- South Korea’s KOSPI Index fell 4.44%;
- India’s SENSEX is down 2.12%.
European stock markets are falling at the open today also. A look at some of Europe’s top indices shows:
- London’s FTSE Index is down 1.89%
- The German DAX Index dropped 1.37%;
- The FTSE Italia All Shares Index tumbled 1.21%;
- The French CAC 40 Index fell 1.58% at the open.
European stock markets will continue to focus on issues within their own markets such as the Brexit negotiations and the Turkish Lira Crisis. Additionally, European investors are keeping a close eye on developments in Italy as investors have become fearful of potential anti-EU measures by the new government.
US Futures Are Trading Lower in Pre-Market Action
The U.S. stock market is moving lower in pre-market trading. Indeed, the NASDAQ and the S&P 500 futures are down 0.86% and 0.85%, respectively.
Investors will continue to take their cues from the news cycle heading. Accordingly, any new developments in the Trump legal morass or global trade disputes could see it drive markets in either direction.