The Global Rally Has Completely Collapsed
After U.S. stocks finally finished in the green yesterday and risk assets around the world got a lift following a swift downward move in the prior three sessions, markets are reverting to risk-off mode again this morning.
S&P 500 futures are down nearly 1.0% heading into the start of North American trading. The U.S. dollar-Japanese yen exchange rate is also falling sharply, indicative of fears over global liquidity.
Meanwhile, 10-year U.S. Treasury futures are rallying, currently up 0.3%. The yield on the 10-year Treasury note is 2.71%, down 4 basis points from yesterday's close, and gold futures are up 1.3%, trading at $1267 an ounce.
The charts below show the action in various markets. Across the top from left to right are S&P 500 futures, the dollar-yen exchange rate, and the euro-dollar exchange rate. Across the bottom from left to right are gold futures, 10-year U.S. Treasury futures, and June 2016 eurodollar futures.
