European equities are set to start with gains this morning. There’s nothing particularly bullish out overnight, in fact Asian markets have recommenced their sell off and Janet Yellen has soured the mood by practically confirming that a rate hike will be coming before year end. It’s not so much an influx of buyers that’s nudging markets higher this morning, we’re only parring some of yesterday’s losses; it’s more the case that as we test the recent lows short sellers are becoming a little tetchy.
U.S Stocks closed lower yesterday for the third consecutive day with all 10 major sectors trading in the red on woes over global growth. Investors eagerly await a speech from Fed Chair Yellen which could offer potential clues on when we could expect a rate hike. The Dow Jones closed 78 points lower, losing just over half a percent.
In currency news the dollar yet again weakened against the euro with investors selling risky assets in the favour lower-yielding currencies. The currency pair has been rattled this week with volatility likely to continue in the coming days.
Gold rallied over two percent on Thursday in one if its biggest gains in 8 months. The precious metal has seen an influx in demand given its safe haven nature as questions marks surround the global economy. Gold touched a one-month high of $1,156 as the dollar continued to weaken against other currencies.
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