The AUD is the strongest and the USD is the weakest as the North American session begins. The USDJPY is finally seeing some profit taking after reaching 129.40. Goldman Sachs said that the chance for intervention has increased significantly. Yields are lower in Europe in the US which is also helping to contribute to the move back to the downside.
The Chinese central bank left its prime loan rate unchanged at its policy meeting. There is expectation was for a cut
Feds Daly will speak at 10:30 AM ET and Chicago Fed president Evans will be speaking today (at 10 AM ET). Canada CPI will be released at the bottom of the hour with expectations of 0.9% gain month-to-month versus 1.0%. Existing home sales in the US are expected at 5.78 million annualized rate versus 6.02 million last month.. The US mortgage applications fell -5.0%. The 30 year mortgage moved up to 5.2% from 5.13% last week.
The US stocks are higher but don't tell that to Netflix owners as their subscriber base fell by 200,000 (versus 2.5M gain expected). Moreover they see this quarter's subscriber base followed by 2 million. Netflix shares are down -27.4%. Other streaming company shares are also lower but more in the 4-6 percent level including Disney and Roku.
In the US debt market yields have backed off with the 30 year down at 2.932% after trading as high as 3.03%. Gold is up about one dollar. Crude oil is trading higher. The private inventory data showed a stronger than expected drawdown of 4.5 million barrels which reversed the previous weeks rise. The EIA data will be released at 10:30 AM
the snapshot of the market levels are currently showing:
- Spot gold up $1.20 or 0.07% at $1951.18
- Spot silver is down two cents or -0.13% at $25.14
- WTI crude oil futures are up $1.90 at $103.94
- The price bitcoin is trading at $41,983. That is up about $500
In the premarket for US stocks, the major indices are higher despite Netflix's woes:
- Dow industrial average is up 140 points after yesterday's 499.51 point rise
- S&P index is up 16 points after yesterday's 70.52 point rise
- NASDAQ index is up 55 points after yesterday's 287.3 point rise
The European equity markets, the major indices are also to the upside as they catch up to the afternoon buying in the US equities yesterday
- German DAX, up 1.2%
- France's CAC, up 1.4%
- UK's FTSE 100, up 0.25%
- Spain's Ibex, up 1.36%
- Italy's FTSE MIB up 1.0%
In the US debt market, yields are lower on the day:
- two year yield 2.579%, -1.7 basis points
- five year yield 2.868%, -5.0 basis points
- 10 year yield 2.87%, -6.4 basis points
- 30 year yield 2.943%, -5.5 basis points
In the European the benchmark 10 year yields are lower across the board with Italy and -8.7 basis points leading the way, UK yields are down -6.8 basis points.
