Global markets are slumping, oil is dropping, and government bonds and gold are surging as investors seek for safe ground.
1. Rush for Gold
1. Rush for Gold
Gold reached its highest levels in three weeks early on Friday, and government bond yields around the world are dropping as investors flee from equities to perceived safety.
Yields on German and U.K. 10-year government bonds hit record lows, and Japanese yields slipped even further into negative territory. When there is higher demand for government bonds, prices tend to rise and yields drop.
"This is indicative of a wider risk aversion move, helped by the expectation of no near-term easing from the Fed and also the wider concerns on the EU referendum vote in the UK later this month," Simon Smith, chief economist at FXPro, wrote in a note.
U.S. stock futures are down.
2. Consumer sentiment on tap
2. Consumer sentiment on tap
Even though the Fed was not expected to tighten monetary policy at their June 14-15 meeting, market participants were still looking ahead to data to show the state of the consumer as a key factor for growth in the U.S. economy.
The University of Michigan will release the preliminary read of consumer sentiment in June at 14:00GMT, or 10:00AM ET.
This will be the second-to-the-last reading on consumption ahead of the May retail sales out on the June 14.
3. Stronger dollar weighs on crude
3. Stronger dollar weighs on crude
A stronger dollar weighed on oil prices on Friday, pulling black gold from an 11-month high despite continued supply disruptions and evidence of high demand.
U.S. crude oil futures lost 1.54% to $49.78, at 10:00AM GMT, or 6:00AM ET, while Brent oil traded down 1.37% to $51.24.
4. Markets overview
4. Markets overview
European markets are lower in early trading, with Germany's DAX down 1.7% and the FTSE 100 down 1.3%. Asian markets ended the session down. Markets in China were closed for a holiday.
The Dow Jones industrial average closed 0.1% down on Thursday, while the S&P 500 shed 0.2% and the Nasdaq lost 0.3%.
