This week the financial markets have been dominated by the overwhelmingly positive economic statistics from the United States. After the US Treasury yields surpassed the 3% growth that surprised investors positively, they continue to rise. The American dollar is also supported by this growth, as investors have better confidence in the American economy.
This type of growth in bond yields, however, has a negative impact on the stock market. Stocks are traditionally seen as the riskier sister asset of bonds. Due to the renewed interest in Treasury yields stock indices are marking losses.The Dow futures shed 70 points, while the S&P 500 dropped by 0.33%, similar to Nasdaq futures. European markets are faring in the same vein, also marking losses.
Meanwhile, the USD continues to reign supreme. It is approaching two-month highs, with the Dollar index growing to 90.75.
