Doesnt have much room to rise. Is the crude rally done . Welcome to the program. Half an hour until the market open. Good morning, caroline. Lets talk about whats going on in terms of the equity market. After the volatility of the last few days, today looks relatively benign. We are looking for a reasonably flat open, a little bit of the softer side. 1 10 ofutures, ftse 100 1 higher, Everything Else looking softer. Caroline yeah, and the ripples of the italian concerns seem to be failing as fast as asia. Msci down, the first time we have seen a drop in that market in the week. We are seeking a move to new havens. The dollar is trading lower, yen trading higher, yields really pushing lower. U. S. Treasuries near a record low, aussie bond yields of 1. 94 , crashing to new alltime lows as the rba holds fire for the Interest Rate changes and italy yields are just pushing up slightly. Clearly, concerns once again about the banking system, the need for recapitalization and merkels decision,
These numbers are relatively weak but not too much worse than have been estimated, so we will keep looking at the data and bring you information and the reaction to it over the course of the session. We are seeing u. S. Stocks make their lows this session. As this risk aversion comes back into the market today. I wanted to look at how the major averages have been doing since the close of the vote on the thursday before the u. K. Vote, or before we learn the results. If you look at the s p 500 on june 23, we are off about one and a quarter percent. We came within a much smaller margin at one point last friday but with the decline today we are a little bit further. To give you the idea of the glide path of what we have seen since that vote. I also want to take a look on the groups on the move. The economically Sensitive Energy leading declines along with financial materials and consumer discretionary. Utilities, telecom, and consumer staples. Energy, we are seeing a pullback in oil price
Live from european take with from bloombergs European Headquarters. We are getting breaking news for Eurozone Services pmi. We did have the individual breakdown and most of them were a low expectations. Euro area as a whole fall and 52. 8 . Better than the preliminary 52. 4 . If you have the breakdown, it is pmiany Services June falling 23. 7 . Lets check on euro dollars. Lets go straight to the market. We are seeing a little bit of the rally that we saw faltering. A lot of stocks slumping, commodities down. Lets get those boards up if we can. Global stocks dropping for the first time in more than a week. This is mainly linked to what we are seeing in the banks. I want to show you some general index. It is the italian banks that is giving investors headaches. There is more possible to of bank bailout in italy. That is giving investors calls to be cautious. Lets get to first word news with nejra cehic. Nejra Australian Central Bank has held Interest Rates as it from an inconclusive gene
We are around session lows so lets head to the markets desk where we have the latest. A sense of relief fading after four days of gains. We are seeing them trading lower with the nasdaq leading those declines falling 1. 3 . The s p 500 also adds to the lows of falling 1 while the dow is down. 9 . If you look at the function on the bloomberg, you can see the sectors falling most declined as well as financials. Remember, financials were some of those that saw the biggest recovery from those february lows. Energyprising that sectors are following today headed forhave crude the biggest fivemonth decline. Trading below 47 a barrel. Gainingeing the dollar momentum after trading lower. Is again at ad record low. The lowest level since 1985. We also see the japanese yen those majornst counterparts. Volatility has surged again. But then a fall of about 43 last week. We are now climbing back up slightly about 10 . Take a look at bond yields. Investors are blocking to safe asens and we see bond y
Bank rallied. Coming off record lows from the equity come this story has legs. This withill follow the former Philadelphia Fed president coming up in just moments. Later, the ceo of one of the largest u. S. Automakers, ford, will be joining us. A lot to look forward to. Jon, we are seeing a little bit rally. Of a relief that has been the story over the last couple days. Deutsche bank up on the session. Similar story on the ftse. The fx market, not much price action. The opec jawbone in overdrive. That story has legs. The commodity market is a little bit stronger. Brent up by 2. 4 . Almost streaking back to a 47 handle. Twoyear yields in germany, alltime low yield. Today, in a secondary market, worth 1. 5 basis points. Yesterday, negative, negative, negative, negative yields. Bonds are back in their box. Alix what happened to the yields backing up . That seems to have gone off the ledge. Lets check in with their bloomberg team. Guy johnson is in london having the latest on the Banking S