Equites in Europe continue....>

GLOBAL MARKET/OPINION: Equites in Europe continue to ebb lower, with the core

stock markets now lower by as much as 1.75% (DAX in particular lagging alongside

peripheral European markets). The US Treasury curve has fallen further, with

30yr US yields hitting fresh record lows as the 10yr drops through 1.60%. This

has resulted in a further flattening of the curve, with 2s/5s and 2s/10s now

comfortably inverted.

-Sagging Treasury yields have done little to drag the USD Index lower, with the

greenback rallying sharply against high beta FX. This has also weighed heavily

on energy prices, with WTI and Brent crude futures lower by as much as 2%.

Precious metals, however, are trading well, with spot gold up around 1% and

north of $1,500/oz.

-Industrials and financial stock are underperforming in Europe and US stock

futures are pointing to a sharply lower open in just a few hours' time.