European major indices close sharply higher as risk-on flows dominate

<p>The major European indices are piggybacking on the better-than-expected US CPI data and subsequent risk-on a flows. Gains of well over 1% are seen across the major indices.</p><p>Looking at the closing levels:</p><ul><li>German DAX, +1.5%</li><li>Frances CAC, +1.64%</li><li>UK's FTSE 100 +1.91%</li><li>Spain's Ibex +1.37%</li><li>Italy's FTSE MIB (delayed 10 minutes), up 1.9%</li></ul><p>Benchmark 10 year yields are lower in Europe as well:</p><ul><li>Germany -9.7 basis points</li><li>France -9.7 basis points</li><li>UK -14.0 basis points</li><li>Italy -13.3 basis points</li><li>Spain -10.5 basis points.</li></ul><p>As European traders look to exit, US stock indices are also higher but less so than European indices:</p><ul><li>Dow industrial average is up 230.11 points or 0.67% at 34492.46</li><li>S&amp;P index is up 39.31 points or 0.88% at 4478.21</li><li>NASDAQ index is up 152.60 points or 1.10% at 13912</li></ul><p>In the US debt market, yields are lower with the shorter end leading the way:</p><ul><li>2-year yield 4.733% -16.2 basis points</li><li>5-year yield 4.076% -16.2 basis points</li><li>10-year 3.865% -11.7 basis points</li><li>30-yeah year 3.965% -5.6 basis points</li></ul><p>The U.S. Treasury will auction off 10-year notes at 1 PM ET.</p>

This article was written by Greg Michalowski at www.forexlive.com.