Investors are interested in the dollar, as well as in decline in bonds and stocks

Profit taking is now the main trend for investors. The Nasdaq 100 Index showed weak performance compared to the S & P500. If we talk about Asian indices, they have gone away from historical highs.

The stock market is losing ground in the debt markets. US government bonds of the 10-year level rose above 1.3%, were able to recover to the limits of February last year. Sales will be the reason for the rise in profitability, as a rule. In 2019, the 1.5% yield became the support level. When it went down, the global sales began.

Now the profitability is growing, so the players are still confident in themselves. They do not go into defensive assets, they normally perceive uncertain market prospects. The yield on German bonds is improving, which are trading above their highs in July.

Overbought currencies led to overheating of stock indices. Apple and Tesla were the companies that set the trend. Trading volumes rise as soon as indices decline. Large funds now feel as confident as possible due to the current circumstances. Small investors can only understand what large companies are counting on in order to make the right choice.

Alexander Timofeev Analyst

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