This brought some concern to the European market due to the fear that high inflation figures would spread to the rest of the continent. European bond yields increased, with the Bund hitting the 1.10% level, causing stock indices to decline. The German DAX closed the European session with more than 2% losses.
Yields on US Treasury bonds also rose, with the 10-year bond close to 2.90%. The North American indices also experienced declines since the beginning of the session, following the wake of the European ones and awaiting the publication of the Fed meeting minutes.
This can be considered a technical correction after almost two months of consecutive rises and after reaching critical and overbought levels.
This is the case with DowJones30, which is close to a resistance level of 34.135. This represents the 0.618% Fibonacci retracement of the entire downward leg since the beginning of 2022, with a daily RSI level above 70, an area it has not reached since May 2021.