FXstreet.com (Barcelona) - Brown Brothers Harriman analysts have taken a look at todays price action and noted that following a strong start to the week in Asia, European woes have dragged down risk sentiment.
They begin by noting that USD is generally softer, except against Yen and Sterling and of note, EURCHF broke above 1.2250 overnight. Looking across markets they see that Fixed Income markets are little changed, with bond yields down a few basis points in major markets. Global equity markets are mostly higher, with the MSCI Asia Pacific up 0.5%, though Chinese gained 3.0% on talk of increasing limits on inbound foreign investment. Japanese markets were closed for holiday. In Europe, the Dow Jones Stoxx 600 is up about 0.4%, led by a rise in financials. Spanish stock market is at its highest level in almost a year (Feb 2012) and Italy's market is at its best August 2011, though their bond markets are seeing some profit-taking today. S&P futures are pointing to a small positive open. With a light economic calendar in North America today, Bernanke's speech in Michigan after the markets close may be the highlight.