As the North American session begins, the GBP is the strongest and the JPY is the weakest the USD is mostly weaker with gains only vs the JPY today. The markets have gotten through the Iran attack on Isreal over the weekend as defense systems intercepted 99% of the incoming missiles with minimal damage. Isreal still weighs the response and they continue to saber rattle (as you do). That may keep markets on edge but at the snapshot this morning in the US, stocks are higher, yields are higher as the flight to safety unwinds, the USD lost its flight to safety bid, and even oil is lower.
In other news:
- Goldman Sachs reported EPS of $11.58 much higher than the $8.56 expected. Revenues came in at $14.21 billion versus $12.92 billion estimate.
- Tesla is laying off more than 10% of its global workforce
- Charles Schwab reported EPS of $0.74 versus $0.73 expected. Revenues came in at $4.74B versus $4.70B estimate
Central-bank news:
- Reuters reported that the Bank of Japan is shifted to a more discretionary approach to setting policy with less emphasis on inflation.
- ECBs Rehn said that the ECB and cut in June if inflation cells as expected
- ECBs Kasmir agreed that rate can be cut in June given persistent for inflation and added that restrictions can be gradually relaxed.
A snapshot of the other markets as the North American session begins currently shows.:
- Crude oil is trading down -$0.71 or -0.83% at $84.95. At this time yesterday, the price was at $86.25
- Gold is trading up $16.47 or 0.70% at $2359.67. At this time yesterday, the price was $2394.45
- Silver is trading up $0.68 or 2.44% at $28.52. At this time yesterday, the price was at $20.98
- Bitcoin currently trades at $66,097. At this time yesterday, the price was trading at $70,852
In the premarket, the major indices are trading higher:
- Dow Industrial Average futures are implying a gain of 199.67 points. On Friday, the index fell -475.84 points or -4.24% at 37983.25
- S&P futures are implying a gain of 27.84 points. On Friday, the index fell -75.65 points or -1.46% at 5123.40
- Nasdaq futures are implying a gain of 111.00 points. On Friday, the index fell -267.10 points or -1.62% at 16175.09
The European indices are trading higher:
- German DAX, +1.01%
- France CAC , +1.04%
- UK FTSE 100, -0.18%
- Spain's Ibex, +0.26%
- Italy's FTSE MIB, +1.20% (delayed 10 minutes)
Shares in the Asian Pacific markets were mostly lower:
- Japan's Nikkei 225, -0.74%
- China's Shanghai Composite Index, +1.26%
- Hong Kong's Hang Seng index, -0.72%
- Australia S&P/ASX index, -0.46%
Looking at the US debt market, yields are higher as flight to safety flows reverse
- 2-year yield 4.959%, +5.8 basis points. At this time Friday, the yield was at 4.897%
- 5-year yield 4.625%, +6.7 basis points at this time Friday, the yield was at 4.558%
- 10-year yield 4.581%, +5.5 basis points. At this time Friday, the yield was at 4.51%
- 30-year yield 4.674%, +4.3 basis points. At this time Friday, the yield was at 4.626%
Looking at the treasury yield curve spreads:
- The 2-10 year spread is at -37.8 basis points. At this time Friday, the spread was at -37.7 basis points
- The 2-30 year spread is at -28.5 basis points. At this time Friday, the spread was at -27.1 basis points
European benchmark 10 year yields are higher:
