Equities stay more sluggish as rising yields keeps optimism in check

Here’s a snapshot of thing currently:

• Eurostoxx -0.2%
• Germany DAX -0.1%
• France CAC 40 -0.4%
• UK FTSE -0.2%
• S&P 500 futures -0.2%
• Nasdaq futures -0.2%
• Dow futures -0.4%

The declines aren’t anything too significant and can still be seen as investors just taking some off the top from the surging gains before this. But rising yields is definitely a threat that could lead to a deeper retracement in equities, so that’s something to be wary about.

10-year Treasury yields are up another 2 bps to near 4.23% on the day and 2-year yields are holding back above 4% at around 4.05% now.

As the overall risk mood keeps more sluggish, the dollar remains in prime position still. AUD/USD is now down 0.4% to 0.6655 with USD/JPY continuing to hold higher and is up 1.1% to 152.72 currently.

This article was written by Justin Low at www.forexlive.com.