Stocks continue run higher. Yields little changed
As North American traders enter for the day stocks are continuing the rally yesterday when the major indices soared over 2% on hopes that the Fed is more open to a cut. The NZD is the strongest currency (squeezing/correction higher continues, and RBNZ comments that rates may stay unchanged against the markets wishes). The JPY is the weakest (flight out of safety flows continue). The USD is near unchanged vs the EUR, GBP, CHF and AUD. The greenback is lower vs the NZD and CAD, but higher vs the JPY. The US ADP employment changed, non-manufacturing ISM index and oil inventories will be released today.
The ranges are modest with the major pairs vs the USD all with ranges less than 46 pips. With the exception of the NZDUSD, all are well below their 22 day averages. The JPY crosses are higher but off their highest levels. Higher stocks are helping those pairs move up.
In other markets, the snapshot shows:
- Spot gold, +$9.30 or 0.70% at $1334.50
- WTI crude oil futures, -$0.55 or -$1.01 at $52.95
US stock futures are implying a higher opening:
- Dow up 162 points
- S&P up 17 points
- Nasdaq up 65 points
In Europe, shares are higher:
- German Dax, +0.45%
- France's CAC +0.6%
- UK FTSE +0.5%
- Spain's Ibex, +0.5%
- Italy's FTSE Mib is bucking the trend at -0.45%
In the US debt market, the yield curve is steepening as the 2 year moves down (by -3.4 bps) while the 30 year is up marginally (+0.4 bps). Below are the changes and ranges snapshot.
The European benchmark 10 year yields are mostly lower with the exception of Italy which is seeing investors exit on EU fears.
