The 10-year gilt yield in the United Kingdom soared to its highest mark since 2008, signaling growing unease among investors. Concurrently, the US crude oil price initially crossed the $75 per barrel benchmark but later settled back to the $73 range. In the backdrop of these developments, the Biden administration imposed further restrictions on AI chip exports. These actions included blacklisting significant players such as Tencent and CATL, a notable battery supplier for Tesla.
The selloff in US treasuries persisted, largely driven by apprehensions surrounding Donald Trump's presidency. This financial turbulence poses a challenge for the Federal Reserve as it strives to rein in inflation back to its 2% goal, a task that seems increasingly daunting amidst ongoing market volatility. Meanwhile, the EUR/USD currency pair remained under pressure, hovering around 1.0300, as the UK bond market sell-off exerted downward pressure. The US Dollar continued its rise, reflecting extended strength against other major currencies.
In addition to these financial shifts, Bitcoin US spot Exchange Traded Funds witnessed a significant outflow of over $568 million on Wednesday. This substantial withdrawal highlights a waning demand in the cryptocurrency market. Analysts suggest that the bearish daily technical setup for the EUR/USD pair indicates further challenges ahead, exacerbated by the broader economic uncertainties and trade tensions.
Trade tensions between the United States and various global partners have intensified, creating additional headwinds for international markets. The US stock markets will observe a closure in honor of a day of mourning for former President Jimmy Carter, further affecting trading dynamics.