Risk sentiment sours after Germany's manufacturing PMI misses heavily
Germany's woeful data not only sparked a decline in the euro earlier but it also helped to reignite global growth worries among investors and that is resulting in a sharp decline in stocks as well as bonds rally on the back of the news.
With risk sentiment souring across the board, the yen is benefiting from that as USD/JPY falls from 110.80 to a low of 110.50 on the day. Price now is just sitting above the lows as light bids are seen helping to stem the decline so far.
Germany's 10-year bond yields are on the verge of tipping below 0% and that is going to weigh on the euro as well as bond market sentiment today. Meanwhile, equities are sent lower as the further slump in factory activity in Germany is raising doubts over the strength of the global economy currently.
European stocks are all in the red now, closing in on 1% losses among major indices. US equity futures also took a knock with S&P 500 futures being down by 0.5% currently.
