Equity markets remain flat across Europe and the US as investors are looking for clues to untangle the political uncertainty. The euro and European bonds are hit by expectations on the upcoming French and German elections.
Produced by Alessia Giustiniano. Filmed by Rod Fitzgerald.
MICHAEL MACKENZIE: Here's what we're watching as a global trading day is up and running in London. The dollar is firmer across the board. Equities and oil prices are struggling for traction. French bonds remain in the spotlight, but appear to have stabilised a little off of the spreads of German bunds touched a fresh four-year-plus peak this morning.
Investors are searching for a catalyst to spark markets. In the interim, concerns over global growth and politics appears to be pushing money towards havens, although not gold, thanks to a stronger dollar of, the US 10-year Treasury yield has dropped to 2.4%, further below its 50-day moving average. As equities seek a new driver, Treasury paper is a beneficiary, at least for now.
As the dollar extends its recent recovery, the euro is flagging, down nearly 0.8%, while the pound is also under the lash. National elections across Europe starting with Holland next month, along with Brexit negotiations, across the lake the shadow across the foreign exchange market. Expect the euro and the pound to remain highly sensitive to political mood swings for some time.