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Analysts at ANZ explained that there were some large moves in markets with Italy’s political news driving volatility.  

Key Quotes:

“Italian yields rocketed higher with the 2-year yield up over 180bps and the 10-year up almost 50bps. New elections are expected over the coming months with some parties likely to run on an explicit exit-the-euro platform.”

“Safe-haven demand saw US Treasury yields fall sharply, down 10-14bps across the curve. Yields in Europe outside of Italy were down 3-12bps. European shares fell with Italian shares leading declines.”

“In the US, stocks opened lower and continued to trend that way, with the DJIA down 1.9% and the S&P 500 down 1.6% at the time of writing. Financials led declines, down more than 3%. The VIX surged 32% to 17.4. The dollar appreciated against all in the G10 but the safe-haven JPY. Oil was down about 2% and gold was up.”