European markets had a broadly positive day yesterday, helped by a strong start for US markets, driven primarily by the Nasdaq, which was up by 2% at one point, however these gains reversed in the last hour of US trading, pulling the Nasdaq 100 below its 200-day MA, as it closed at a new three month low.
Investors couldn’t even blame a rise in yields with US treasuries finishing the day higher, thus pulling yields lower for the second day in succession.
The inability of US markets to hold onto yesterday’s move higher is a worry and could well indicate the potential for further losses in the coming days.
With the stock market selling off, the US dollar also underwent a late turnaround, rallying back to its highs for the week, pulling the euro down to a one week low.
Yesterday’s late US sell off looks set to prompt a sharply lower open for markets here in Europe later today, after Asia markets followed suit with the Nikkei also sliding to a 3-month low.
On the data front we have the latest UK retail sales numbers for December, and the bar…
