- Lagarde says ECB is closely monitoring bond yields
- Boris Johnson unveils lockdown exit plan
- US tech stocks extend losses
European indices finished today's session slightly lower amid signs that ECB policymakers are concerned about rising bond yields in recent weeks. President Lagarde said that ECB is closely monitoring the evolution of longer-term yields, and that it will continue to support all sectors of the economy by preserving favorable financing conditions over pandemic period. Investors worry that rising bond yields and higher inflation expectations, could force central banks to start tightening policy sooner than previously assumed. UK Prime Minister Boris Johnson provided details of the plans to ease restrictions on the UK economy, saying his roadmap will guide the government “cautiously but irreversibly” to lifting the lockdown. DAX 30 fell 0.3%, CAC40 lost 0.11% and FTSE100 finished 0.18% lower.
US indices launched today's session sharply lower amid fears that the President's Biden 1.9 trillion stimulus package could lead to higher inflation, leading to higher borrowing costs and higher input costs for companies. Recent sell-off was triggered by a sharp move higher in Treasury bond yields. The 10-year Treasury yield broke fresh 1-year highs before retreating and the gap between 5 and 30-year yields touched the highest level in more than five years. Some equity investors fear that high Treasury could especially hurt high-growth companies reliant on easy borrowing while diminishing the relative appeal of stocks. Tesla shares slid 5% following a 4% decline last week. Big Tech stocks came under pressure as Apple, Amazon, Microsoft, Netflix and Alphabet all traded at least 1% lower.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appOil is trading higher, with WT trading slightly below $61 a barrel and Brent about $64.65 a barrel as it may need several weeks to resume normal operations in Texas following last week's deep freeze weather. Elsewhere gold futures rose 1.50% to $ 1,810.00 / oz, while silver is trading 2.7% higher near $ 28.00 / oz helped by broad dollar weakness. Bitcoin plunged nearly 17% and copper jumped above $9,000 a metric ton for the first time in nine years, taking another step closer to an all-time high set in 2011 as investors expected that supply tightness will increase as the world recovers from the pandemic.
Copper price jumped above major resistance at $9000 and is approaching peak from February 2011 at $10200. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.