European major indices close the session with mixed results

At the start of the US session, the major European  indices  showed gains across the board:

  • German DAX, +1.5%
  • France’s CAC, +1.86%
  • UK’s FTSE 100 +0.3%
  • Spain’s Ibex, +1.0 present
  • Italy’s FTSE MIB +0.25%

As traders look to exit, the major indices are more mixed and off their highest levels:

  • German DAX, +0.98%
  • France’s CAC, +1.36%
  • UK’s FTSE 100 unchanged
  • Spain’s Ibex +0.50 percent
  • Italy’s FTSE MIB -0.30%

Looking at the benchmark 10 year yields, the rates are higher across the board:

Europe yields

IMF weighs in on the yen slump – driven by fundamentals (… Ya think???)

A senior IMF official (not a kid on work experience) with the remarks:

  • yen’s recent declines are driven by fundamentals, there is no reason to change Japan’s economic policy
  • no need to change BOJ’s accommodative monetary policy

The official was asked if intervention to buy the yen would be justified, says no:

  • we do not see disorderly market conditions in the FX market

Sheesh, anyone with a brain cell has been pointing to the monetary policy divergence between the BOJ (super-easy) and  Federal Reserve  (tightening up) as a key driver. The IMF have caught on now.

Interestingly, this from Morgan Stanley earlier in the week points to terms of trade also:

yen boj terms of trade 21 April 2022
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