Market mind: Dollar glimmers in broad market gloom

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German and Spanish inflation data and European consumer confidence data due today seem unlikely to pierce the gloom that's enveloped markets in recent days. Oil's spike to one-year highs has poured fuel on selling in the bond market and further pumped up the dollar, while global stocks have dropped for nine sessions in a row. The greenback stands at a 10-month high against a basket of other majors, and 10-year Treasury yields are hovering at a 16-year peak.

German share price index DAX graph is pictured at the stock exchange in FrankfurtGerman and Spanish inflation data and European consumer confidence data due today seem unlikely to pierce the gloom that's enveloped markets in recent days.

Lawmakers at loggerheads on Capitol Hill have the U.S. just days away from its fourth partial government shutdown in a decade, which could provoke Moody's into a ratings response. China heads off for a week-long holiday after today, with the yuan squeezed, developer Evergrande's shares suspended again, industrial profits tumbling, and a record number of Chinese planning to eschew overseas travel during the break.

Stocks in Asia fell on Thursday, with the Nikkei dragged nearly 2% lower as a number of companies in Japan went ex-dividend. Rising U.S. bond yields have the 2-year U.S.-Japan spread well above 500 bps and dollar/yen inching closer to 150.

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