Traders hit the sell button again

The second half has picked up where the first one left off, as stocks fall and the dollar rises.

Stocks in the red as second half begins

“The losses of the first half do not seem to have created any immediate desire to buy the dip it seems. An initial recovery for US markets from the lows of the morning has given way to more losses, and even the prospect of a long weekend in the US hasn’t tempted the dip buyers in. There is a growing unease about the summer, especially with a potentially very gloomy Q2 earnings season nearly upon us. It really does look like we have another big leg lower before this bear market is done.”

Dollar nearly back at June highs

“Given the pessimism that seems to prevail at present, it is hardly surprising that the dollar is enjoying fresh safe haven flows. Even without strong inflation the greenback has plenty to recommend it as thoughts turn to global recession, but the solidly of price rises means that the dollar’s appeal is as strong as it was at the beginning of the year.”