What is bad for the US is good for EU (or so is the hope)
The European shares have a decoupled from the US market and are ending mostly higher on the day. What is bad for the US, seems to be good for the EU (for now at least and at least in the stock markets in Europe).
The provisional closes are showing:
- German DAX, +0.6%
- France’s CAC, +0.5%
- UK’s FTSE, +0.3%
- Spain’s Ibex, +0.3%
- Italy’s FTSE MIB, -0.45%
The benchmark 10 year yields in Europe are not immune to the yield fall (so they still spell trouble ahead), but are off the lowest levels (which were new all time lows for the yields). Spain got within 12.3 basis points from the 0.0% level. Portugal got within 15.3 basis points. UK and Italy seem like bargins with yields at 0.478% and 1.4% respectively. Of course US 10 years at 1.634% is also attractive relatively.