Global sell-off resumes, but it’s different – BBH

By FXStreet FXStreet (Delhi) – Research Team at BBH, suggests that with equities sliding and oil pushing back below $30, it may feel like the resumption of moves in the first two and half weeks of the year, but it is different.

Key Quotes

“It is considerably more orderly. The contagion from the equity and oil slide is more limited than previously, and even oil is recovering in the European morning to trade back above $30. European equities opened lower but spent the morning recovering, even if not fully.

The change is also evident in the foreign exchange market. The Australian and Canadian dollars are firm, despite the fall in oil and the Shanghai Composite that was off 6.4% and closed at a 13-month low. The greenback initially did drop to JPY117.65 against the yen, but is back above JPY118.30, near the highs of the day.

The bond markets also appear to be taking the equity fall in stride. Core 10-year bond yields in Europe are off around 2 bp. Spanish yields are off about the same, while other peripheral yields, outside of Greece are little changed. The US 10-year yield is off a single …read more

Source:: FX Street