Meanwhile, equities are being hurt by the strong dollar and the surging 10-year yields, as well as the strong oil price and increased geopolitical risk, says Peter Garnry, Saxo’s Head of Equity Strategy. Today's ZEW survey expectations is the key data for equities today, bearing in mind that the last print was a very disappointing -8.2.
Finally today, the crude oil rally has resumed on the back of Middle East tensions and a Saudi desire for $80/barrel, says Ole Hansen, Saxo’s head of commodity strategy. "The clashes in Gaza worsened market sentiment about geopolitical risks in the Middle East. Moreover, Saudi Arabia’s focus seems to have shifted towards the desire for higher prices than a balanced market," says Hansen.