Headlines:
- What are markets trying to say in trading so far today?
- BOJ reportedly open to tweaking yield curve control later this year if wage momentum holds
- ECB's Knot: It is too early to talk about a pause in rate hikes
- PBOC reaffirms to continue implementing prudent monetary policy
- Germany March PPI -2.6% vs -0.5% m/m expected
- France April business confidence 102 vs 103 prior
- Eurozone February trade balance -€0.1 billion vs -€11.3 billion prior
Markets:
- CHF leads, NZD lags on the day
- European equities lower; S&P 500 futures down 0.6%
- US 10-year yields down 3.6 bps to 3.566%
- Gold up 0.4% to $2,001.98
- WTI crude down 1.6% to $77.90
- Bitcoin down 1.6% to $28,766
It was more of a risk averse session with the bulk of the moves coming right at the European open, as stocks edged lower and bond yields falling in tandem. It seemed like broader markets are worried about higher rates weighing on economic prospects but that sentiment isn't really shared by the FX market so far.
The dollar is sitting more mixed and mostly little changed, with notable moves among major currencies being rather sparse on the session. The kiwi continues to sit lower, after falling in Asia trading following the softer NZ CPI data. NZD/USD is down 0.4% to 0.6175 but is off its earlier lows of 0.6150 at least.
In other markets, equities retreated early on in Europe with regional equities stumbling in the opening hour to be down between 0.4% to 0.8% mostly. US futures also fell simultaneously with the drop led by tech, before consolidating losses thereafter.
The drop in stocks coincided with a nudge lower in Treasury yields as well, with a fall observed across the curve. It might be a reaction to global growth worries but 10-year yields also ran into its 100-day moving average at 3.61% this week, so that might be something to consider as well.