Market News
- USD (USDIndex 92.60) rallies on back of rising yields & equity wobbles.
- Yields rallied as Treasuries slipped, (10yr 1.37%).
- Equities stalled – USA500 -15 at 4520 (Dow lost -0.76%), Nasdaq flat. USAFUTS at 4521, post Labor Day profit taking, cyclicals slipped, tech held on. (MS talks of 10-15% pull back).
- USOil recovered from $67.50, back to $68.50 now, but well below $70.00 pre-NFP high.
- Gold tanked to $1792 from 1828 yesterday and 1833 on Friday. Trades at $1795 now.
- Overnight – JPY GDP beat (0.5% vs 0.2%) but Econ Sentiment slipped.
European Open – Yesterday EZ GDP revised higher, but sentiment was weaker. Today December 10yr Bund future is down -8 ticks, slightly underperforming versus Treasury futures. The paper is off the highs seen during the Asian session however, & investors will look for Fedspeak today for further guidance on US interest rate outlook. Markets seem resigned to an ECB announcement this week of a slight tapering of PEPP purchases that will likely see Bunds underperforming versus Gilts & Treasuries. DAX & FTSE 100 futures down -0.025% and -0.336% respectively after a largely weaker Asia session. FX markets: EURUSD down to 1.1835, from 1.1890 yesterday, GBP struggled and Cable dipped to 1.3755, after the government announced tax hikes that will hit workers and businesses. USDJPY rallied from 109.68 yesterday to breach & hold 110.00, at 110.40.
Today – US Crude Private Inventories, BoC Policy Decision, JOLTS report, BoE’s Bailey, Ramsden, Broadbent, Tenreyro, Fed’s Williams.
Biggest Mover @ (06:30 GMT) AUDUSD (-0.13%) All AUD pairs remain pressured following RBA yeasterday. Breached, 0.7400 to 0.7370 now. Faster MA’s aligned lower, MACD signal line & histogram below 0 line but flat. RSI 28.80, OS but still falling. Stochs OS n still falling. H1 ATR 0.00082, Daily ATR 0.00615.
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Stuart Cowell
Head Market Analyst
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