The market continues to breathe a sigh of relief today

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The lack of any negative headlines in itself is a positive development, and that is what’s helping broader market sentiment today I would say. The banking turmoil has caused plenty of panic and worries but it looks like we are finally seeing traders and investors breathe a much needed sigh of relief.

2-year German bond yields are now 20 bps today to 2.52% while 2-year Treasury yields are up 15 bps to 4.07% at the moment.

It still doesn’t take away from the plunge that we have seen in the past week or so but it is at least a start. That indicates safety bets are starting to abate and we are seeing equities benefit as a result. Here’s a snapshot of things in Europe:

  • Eurostoxx +1.8%
  • Germany DAX +1.7%
  • France CAC 40 +1.7%
  • UK FTSE +1.4%

Meanwhile, S&P 500 futures are also seen up 25 points, or 0.6%, at the moment with Dow futures also seen up 0.6% and Nasdaq futures up 0.3% on the day.

In FX, things are more mixed though but the Japanese yen is among the laggards as bond yields climb higher. USD/JPY is up 0.8% to 132.30 levels now with the dollar sitting more mixed – down against the euro and franc but up against the pound and antipodeans.