AFTER SOFT U.S. ECONOMIC DATA DOLLAR IS UNDER PRESSURE, STOCKS

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The U.S. bond yields and dollar fell, while shares are also dropped on Monday. Investors are hurt and are worried over upcoming French elections and North Korea situation.

S&P 500 mini futures was dropped by 0.1% to 2,325, and is edging nearly a 6 week low of 2,317.75, following Trump’s failure over reforms on healthcare. Apart from this, Japan’s Nikkei shed 0.4% and MSCI’s broadest index of Asia-Pacific shares outside Japan dropped by 0.2%.

For now, the main focus remains China’s economic data during the trading hours of Asia. Compared to the previous year, economists are expecting second-biggest economy of the world to grow by 6.8%. After China readings gave major shock, market is focused on U.S. Data. Inflation is slowed down by 2% as U.S retail sales dropped in March.

Some analysts after presidential election said, the yield could now cover the gap between 2.150 and 2.168%.

“At the moment, it is hard to see any factors that could drive up bond yields,” said Hiroko Iwaki, senior strategist at Mizuho Securities. “And compared to U.S. bond yields, which have given up much of their gains after the election, U.S. share prices, having gone through a limited correction, look vulnerable given potential developments in North Korea or the French election,” she said.

Author

Bill Collins

For any feedback and suggestions contact author at Bill.Collins@themarketdigest.org

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