Europe maintained the sentiment from Asia resulting in 1% gains for FTSE, DAX, and CAC whilst IBEX returned 1.5%. Yes, Europe had one eye on the FED but has the other (along with everything else) firmly fixed on BREXIT. Today was a relief rally given that Retailers numbers were better than expected, Unemployment surprised and the Rate stands at the lowest (5%) in over 10 years all set the backdrop for a little light relief. The afternoon was much spent waiting for the FED’s announcement and even that just woke the Bond buyers.
Having seen the FED stocks displayed their disappointment into the close losing all the days gains and closing in negative territory. FED Chair Yellen noted in her remarks that BREXIT is a concern but this remains an unknown for all markets. However, gold and bonds liked the news as stocks retreated.
US 10yrs gained momentum closing sub 1.60% to close 1.57%. 2’s gained 5bp (price) after the unchanged to close at 0.67%; closing 2/10 curve at +90bp. German 10yr closed -0.01% closing the Bund/US spread at 158bp. Italy 1.49%, Greece 7.99%, Turkey 9.50%, Portugal 3.32% and UK at 1.12%.