The AUD is the strongest and the CHF is the weakest as the NA session begins. The USD is stuck in the middle of the "league table" with the USDCHF (up 0.42%), offset by USD declines vs the AUD (USD lower by -0.27%).
The USD stocks are mixed but off the highs from premarket levels. The Dow was up around 0.8%. The Nasdaq was up over 1.0%. The Dow is now negative. After the close yesterday, Amazon and Intel reported better earnings. Amazon shares are still up 5.55% , and Intel is up 7.47% but the broader indices are just not doing all that well. Investors are negative on the markets and technicals are certainly not helping.
The Fed meets next week and are expected to keep rates unchanged, but yesterday the strong third-quarter GDP reading has raised uncertainty about its December meeting. Today the Fed's favored measure of inflation (PCE) will be released and closely watched. Analysts expect a 3.4% year-over-year increase in September's headline inflation and a 0.3% monthly rise. The core PCE, which excludes fuel and energy prices, is expected to show a 3.7% annual increase and a 0.3% monthly rise. Fed Chair Jerome Powell has emphasized that strong economic growth could lead to further tightening of monetary policy if it risks inflation. Given the positive GDP data, any signs of growing inflation could impact future Fed decisions.
A snapshot of the markets as the NA session gets underway shows:
- Crude oil is trading up $1.45 or 1.77% at $84.67. At this time yesterday, the price was trading at $83.35
- Spot gold is trading down $1.85 or -0.09% at $1982.82. At this time yesterday, the price was trading at $1984.20.
- Spot silver is trading down $0.04 or -0.19% at $22.72. At this time yesterday, the price was trading at $22.91.
- Bitcoin is trading at $34,012. At this time yesterday, the price was trading at $34,199.
In the US stock market, the major indices are trading mixed with the Dow industrial average down and the S&P and NASDAQ index higher
- Dow Industrial Average futures are implying a decline of -92 points. Yesterday, the index fell -251.63 points or -0.76%
- S&P index futures are implying a gain of 8.75 points points. Yesterday, the index fell -49.56 points or -1.18%
- NASDAQ futures are implying a gain of 104 points. Yesterday, the index fell -225.62 points or -1.76%
In the European equity markets, the major indices are mostly lower
- German DAX, -0.13%
- France's CAC, -1.19%.
- UK's FTSE 100, -0.32% %
- Spain's Ibex, -0.15%
- Italy's FTSE MIB, -0.34% (10 minute delay)
In the Asia Pacific market, major indices were lower:
- Japan's Nikkei index, +1.27%. For the trading week, the index fell -0.86%
- China's Shanghai Composite Index, +0.99%. For the training week the index rose 1.61%
- Hong Kong's Hang Seng index, +2.08%. For the trading week the index rose 1.32%
- Australia's S&P/ASX index, +0.21%. For the trading week the index fell -1.1%
In the US debt market, yields are moving marginally higher:
- US 2Y T-NOTE: 5.05% up 0.6 basis points. At this time yesterday, the yield was at 5.133%
- US 5Y T-NOTE: 4.809%, up 1.0 basis points. At this time yesterday, the yield was at 4.917%
- US 10Y T-NOTE: 4.875%, up 2.8 basis points. At this time yesterday, the yield was at 4.968%
- US 30Y BOND: 5.028%, up 3.8 basis points. At this time yesterday, the yield was at 5.106%
- 2 – 10-year spread is at -17.5 basis points. At this time yesterday, the spread was at -15.7 basis points basis points.
- 2 – 30 year spread is at -2.2 basis points basis points. At this time yesterday, the spread was at -2.3 basis points basis points.
In the European debt market, benchmark 10-year yields are little changed:
