Nasdaq 100, US Dollar, BTC/USD, Crude Oil, PCE Data, Growth Woes
Global market sentiment improved this past week. On Wall Street, futures tracking the Nasdaq 100, Dow Jones and S&P 500 gained 7.25%, 5.25% and 6.34% respectively. In Europe, the Euro Stoxx 50 and FTSE 100 both climbed roughly 2.75%. Meanwhile, in the Asia-Pacific region, Japan’s Nikkei 225 and Australia’s ASX 200 rose 1.23% and 0.77% respectively.
Stock traders found some comfort in weakening government bond yields. The 2-year Treasury yield weakened 3.83% last week and is down over 10% from this year’s high so far. The finalized University of Michigan survey of inflation expectations unexpectedly cooled for June, perhaps an early stage that inflation might have found a turning point.
As a result, the US Dollar weakened against its major peers, suffering from a combination of improving sentiment and falling Treasury yields. One would think that the sentiment-linked Australian and New Zealand Dollars would perform handsomely in…