As London/European traders exit for the day, the major European stock indices are mostly higher. The UK’s FTSE 100 leads the gains, followed by France’s CAC. Italy’s FTSE MIB bucks the trend with a decline.
The closing snapshot shows:
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German DAX: +38.71 points or +0.15% at 25,298.62.
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France’s CAC: +45.48 points or +0.58% at 7,873.12.
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UK’s FTSE 100: +74.53 points or +0.70% at 10,724.87.
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Spain’s IBEX: +20.02 points or +0.10% at 19,230.71.
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Italy’s FTSE MIB: -303.32 points or -0.61% at 49,753.85.
For the German DAX, the buyers had their shot. The index extended above its 100-day moving average at 25,416, reaching a high near 25,448. However, the break could not sustain any meaningful upside momentum, and the price rotated back below the moving average.
From a technical perspective, moving above a key level is the first step. Staying above it is what gives buyers more control. That second step was missing today. The 25,416–25,448 area now becomes the hurdle to get above and stay above. Until then, the failed break gives sellers a level to lean against.
European benchmark 10-year yields are mixed:
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Germany: 3.459%, down 0.4 basis points.
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France: 4.873%, up 3.7 basis points.
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UK: 5.420%, down 3.4 basis points.
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Spain: 4.094%, up 0.4 basis points.
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Italy: 4.562%, down 0.1 basis points.
In the U.S., stocks remain under pressure following the higher-than-expected CPI report. The Nasdaq and Russell 2000 are leading the declines:
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Dow Industrial Average: -168.00 points or -0.33% at 51,507.16.
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S&P 500: -88.20 points or -1.13% at 7,717.25.
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Nasdaq Composite: -460.56 points or -1.69% at 26,743.82.
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Russell 2000: -53.54 points or -1.92% at 2,729.83.
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Nasdaq 100: -569.35 points or -1.86% at 30,000.13.
U.S. Treasury yields are higher, with the largest increases at the shorter end of the curve:
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2-year yield: 4.842%, up 4.9 basis points.
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5-year yield: 5.041%, up 3.4 basis points.
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10-year yield: 5.236%, up 1.9 basis points.
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30-year yield: 5.560%, up 0.4 basis points.
The rise in yields adds to the pressure on stocks. It also leaves traders with more to think about regarding inflation and the outlook for Fed policy.
In other markets, crude oil is higher, while precious metals and bitcoin are lower:
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WTI crude oil: $95.46, up $1.32 or 1.40%.
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Spot gold: $4,078.64, down $82.14 or 1.97%.
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Silver: $55.63, down $3.55 or 6.00%.
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Copper: $6.66, down 0.98%.
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Bitcoin: $81,629, down $1,465 or 1.76%.
European stocks have held up better than their U.S. counterparts today. However, the DAX’s failure above its 100-day moving average is a reminder that buyers still have work to do. They tested the ceiling, but could not keep the break going.
This article was written by Greg Michalowski at investinglive.com.