Global Markets Are In The Red — Traders Say Everything Is Rolling Over
MATTHEW BOESLER
BusinessInsider.com
MAR. 12, 2014
The S&P 500 is down for the third straight session today after reaching an all-time high at the end of last week.
The index is trading around 1859, only 1.5% off the high, but traders say risky assets globally look they are beginning to roll over and head lower.
“The price moves are not for the most part very big, but it is beginning to look as if the markets are rolling over,” says Marc Chandler, global head of currency strategy at Brown Brothers Harriman.
In the absence of any major economic data releases so far this week, concerns raised by Chinese trade data released over the weekend, along with the first default in China’s domestic corporate bond market and the subsequent rout in copper (an asset that many Chinese corporates use as collateral to secure loans through China’s fragile shadow banking system), have roiled global financial markets.
The U.S. dollar is appreciating against the euro and many emerging-market currencies. The Japanese yen, in turn, is appreciating against the dollar.
The yield on the 10-year U.S. Treasury note is trading at 2.73%, four basis points below Tuesday’s closing levels, as market participants looking to bet against U.S. government bonds are moving to the sidelines.
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