- Stocks dribble lower in European morning trade
- Major currencies not doing much so far on the session
- Bonds under the spotlight with little else to focus on
- European equities mostly a touch softer at the open today
- What are the main events for today?
- Eurostoxx futures +0.1% in early European trading
- FX option expiries for 22 October 10am New York cut
- BOE chief economist lambasts ONS over poor jobs data quality
- Chinese equities continue to look more pensive this week
- USD/JPY underpinned by higher yields, faces up against key resistance levels now
- BOJ Executive Director Kato - not targeting FX levels
- USD/JPY above 150.90 again after meek comments from Japan
Markets:
- NZD leads, JPY lags on the day
- European equities lower; S&P 500 futures down 0.45%
- US 10-year yields up 1 bps to 4.206%
- Gold up 0.61% to $2,735
- WTI crude up 0.94% to $71.22
- Bitcoin down 0.08% to $67,300
It’s been another slow session as the lack of key economic releases and limited news flow kept the price action pretty rangebound.
The US Dollar continues to get some support from higher Treasury yields and if the recent days is something to go by, we might see some more legs higher in the US session.
Gold erased all of the yesterdays’ decline and it’s now trading right near the all-time high. It’s been ignoring the rise in real yields, so it will be interesting to see who gives in.
In the equity markets, we continue to see some consolidation around the highs as the markets are probably looking for catalysts to push into new highs and for now are getting pressures by higher yields.
Unfortunately, we have to wait until Thursday to get some market moving data with the releases of the Flash US PMIs and the US Jobless Claims.
For now, it’s more about capital preservation until we get to one of the most important events of the year in November, that is the US election. There’s a good argument that the markets have been already positioning into a Trump victory.
Time will tell.