Tuesday looks like a relief day

The tech-heavy Nasdaq 100 index cratered more than 2% on Monday, but other indices were resilient, with the German DAX jumping more than 2%.

It looks like the big rotation continues to dominate the financial markets – traders and investors are pulling their money from the overvalued tech companies and buying undervalued travel stocks – the re-opening play. 

So far, Tuesday has brought a relief rally as US yields are down 3%, with the 10-year yield trading at 1.55%. It is still too far to call for a top in yields, but some consolidation seems likely after the recent sharp rise.

Later in the day, the revised fourth-quarter euro-zone GDP growth figures will be published. The quarterly change should stay at -0.6%, while the year-on-year change is expected at -5%. 

Elsewhere, gold rose 1% to 1,700 USD, while EURUSD traded 0.4% higher at around 1.1880.

Oil was consolidating after yesterday’s slump, and dip buyers jumped back into the market. The WTI benchmark will most likely try to tag the 70 USD threshold soon.

Source: https://www.axiory.com/market-news/tuesday-looks-like-a-relief-day