Although Wednesday’s equity bloodbath rolled over into Thursday, financial markets calmed somewhat overnight, with Asian stock indices closing in positive territory and US equity futures rebounding by more than 1.0%. Among the G10 currencies, the biggest winner was SEK, which surged after Sweden’s inflation data surprised to the upside.
Markets Stabilize in Asia After Another Rout in Europe and the US
The dollar traded lower or unchanged against most of the other G10 currencies on Thursday. The main gainers were SEK, AUD and NZD in that order, while the only currencies that stayed on the back foot against their US counterpart were the safe havens JPY and CHF. The greenback traded virtually unchanged against GBP and NOK.
The strengthening of AUD and NZD combined with the weakening of JPY and CHF suggest some calmness in the market. That said, the relative calmness came only overnight. Following Wednesday’s equity bloodbath, the risk averse sentiment rolled
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