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Current Futures: Dow -85.00, S&P -9.90, NASDAQ -23.00
U.S. markets are currently trading under the break-even line, even though the overnight markets finished the trading session higher.
The Asian overnight trading session was very strong with the S&P 500 breaking above very important swing points, and most importantly, the S&P futures broke above the range of the last few days of trading. However, the overnight gains easily reversed as the yield on 10-year Treasury notes reached the highest level since October. Moreover, Russia announced that it plans to diversify its foreign reserves from the dollar denominated assets. TheLFB-Forex.com Trade Team notes that Russia is one of the largest U.S. debt holders in the world together with China and Brazil, and they all announced plans to diversify from the U.S. dollar. Higher yields and uncertainty about the fate of the U.S. dollar as a reserve currency had investors shorting the financial sector, which so far has declined 2%, the most among the U.S. sectors.
European markets closed the trading session higher, even though most of the gains were seen near the opening bell. The biggest gains were seen in again in the commodity stocks, which has helped the European market close higher for the second day in a row. Out of the 18 major stock markets in Europe, only one declined on Wednesday, while the others posted reserved gains. Also in Europe, carmakers were pulled higher by the Fiat-Chrysler deal, which has created the sixth largest car-business in the world.
Overnight, the Japanese Nikkei rose 204.67 points (2.09%) to 9,991.49. The Australian S&P/Asx gained 89.50 points (2.27%) to 4,024.40. The U.K. Ftse gained 31.96 points (0.73%) to 4,436.75, while the German Dax rose 53.32 points (1.07%) to 5,051.18. The S&P 500 lost 12.63 points (1.34%) to 929.81, while the Dow Jones declined 112.23 points (1.28%) to 8,650.83
Crude oil for July delivery was recently trading at $70.90 per barrel, higher by $0.90.
Gold for July delivery was recently trading higher by $0.20 to $954.20.
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