Reversal of QE fortunes?

Reversal of QE fortunes?

Mike van Dulken, Head of Research at Accendo Markets commented to clients this afternoon:

Equities are firmly in the red, hampered by a rise in global bond yields (prices falling), increasing their allure but sapping appetite for risk assets, thus stoking fears of a coordinated reversal in the two asset classes following years of quantitative easing. Another bout of USD weakness (US Treasury selling?) is failing to help commodities, whilst simultaneously helping GBP and EUR off their lows to serve as an FX headwind for their respective national flagship equity indices. The FTSE is lower as the drag from Oil majors, Banks, Miners and BATS (weak USD/strong GBP) easily eclipse the limited positive contribution from less currency-sensitive defensives like RB, ULVR, RELX favoured while risk assets are shunned. The FTSE 100 is off its 7600 lows but still in a downtrend. The DAX 30 was unable to get back above 13300. Dow Jones Futures have broken below rising support at 26330. Gold has bounced for a bullish test of $1345.”

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