The AUD and NZD lead the strongest of the major currencies, while the CHF and USD are the weakest. Risk-on flows are dominant as the market takes a breather from the 2-days of sell off in stocks and bonds (with higher yields) after the Fed Chair Powell's speech at Jackson Hole. Today, the JOLTs job opening data will be released with expectations of 10.37M vs 10.7M last month. The US consumer confidence will also be released with expectations for a rise to 97.7 vs 95.7 last month which follows rebounds in the Michigan consumer sentiment index on the back of lower gas price momentum. Case Schiller home price data still has the gains from 2021 to work through. It is expected to show a YoY gain of 19.5%.
The EU today Spain inflation dipped to 10.4% from 10.7%. German CPI came in at 0.3% MoM while the YoY move up to 7.9% vs 7.5% last month and 7.8% estimate. The harmonized YoY rose 8.8% as expected, but up from 8.5%. There is increased thoughts that a 75 basis point hike has helped to increase the EURUSD and push the price back above the 200 hour moving average.
A snapshot of the markets are showing:
- Spot gold is trading down $-5 or -0.29% at $1731.80
- Spot silver is trading down $-0.09 or -0.51% at $18.63
- WTI crude oil is trading $-3.22 at $94
- The price bitcoin is back above the $20,000 level $20420. The low price came in at $20,118
- Natural gas is down $0.11 at $9.16
In the premarket for US stocks, the major indices are higher erasing the declines from yesterday's trade
- Dow industrial average up 206 points after yesterdays -184.41 point decline
- S&P index up 29 points after yesterdays -27.06 point decline
- NASDAQ index is up 124 points after yesterdays -124.04 point decline
In the European equity markets the major indices are also sharply higher and erasing yesterdays declines:
- German DAX, up 243 points or 1.89%
- France's CAC up 66 points or 1.06%
- UK is back from holiday and trading up 5.23 points or 0.07%
- Spain's Ibex up 94.32 points or +1.18%
- Italy's FTSE MIB +320 points or +1.47%
In the US debt market, yields are lower at the longer end. The 2 year yield is still up marginally and trading at the highest level since November 2007:
In the European debt market, yields mostly lower. UK traders are back, and yields are higher after the holiday weekend:
