The AUD is the strongest and the USD is the weakest after trading to highest level since the start of 2017 yesterday (the DXY index that is). The AUD was helped (a little maybe) by China State Council promising to support the economy. The move helped to push the Hang Seng index up 10% on the day and give some relief from the recent declines. The US dollar has consequently moved to the downside after its recent rises. Stocks are lower after Amazon shocked the market with a huge loss for the quarter. They did have a $3.8 billion right off of the review and shares but the internals weren't all that great with a e-commerce revenue growth of 7% – the slowest since Amazon started breaking out the number. Apple is also lower after it said China's Covid situation may decrease sales by $8 billion going forward.
Amazon shares are down near 10% and Apple shares are down -1.8%.
US yields are trading higher which runs in the face the dollar moving lower but the past few days have seen yields go down in the dollar move up (so maybe it is the new story).
In the euro zone today the CPI flash estimate rose to 7.5% with the core measure up 3.5% (versus 2.9% last month and 3.2% estimate). This was retail sales fell -6.6% year on year versus 13.3% estimate. Germany preliminary GDP quarter record rose 0.2% as expected.
The economic calendar is full today with core PCE price index expected to rise 0.3% month on month. The employment cost index for the quarter, personal income, personal spending, Chicago PMI, University of Michigan revised all schedule to be released in the US. Remember next week the Fed will meet and announcer rate decision on Wednesday with a 50 basis point rise expected. Canada GDP will also be released at the bottom of the hour with expectations of 0.8% versus 0.2% for the month
In other markets, the morning snapshot shows:
- Spot gold is trading up $23.94 or 1.27% $1918.40
- Spot silver is up $0.35 1.54% at $23.47
- Crude oil is trading up $0.96 at $106.32
- Bitcoin is trading up down $1000 or -2.52% at $38,760.54
In the premarket for US stocks the major indices are trading lower after Amazon, and Apple earnings data disappointed. Amazon missed on earnings-per-share by a lot and Apple warned that China Covid make impact forward earnings by $8 billion. Intel sees chip shortage continued to 2024. Robinhood saw user growth the tumble
- Dow industrial average is down 118 points after yesterday's 614.46 point rise
- S&P index down 37 points after yesterday's 103.52 point rise
- NASDAQ index down 170 points after yesterday's 382.59 point rise
The Europe, the major indices are higher as North American traders enter for the day
- German DAX, +0.8%
- France's CAC +0.5%
- UK FTSE +0.3%
- Spain's Ibex, +0.5%
- Italy's FTSE MIB, +0.5%
The US debt market, the yields are higher after declines seen recently
- 2 year yield is 2.68%, up 5.8 basis points. The high yield reached 2.787% this week
- 5 year is at 2.85%, up 4.4 basis points. It's high yield in this cycle reached 3.048%
- 10 year at 2.85% up 2.4 basis points. It's high yield reached 2.981%
- 30 year 2.911% of 1.5 basis points. It's high yield reached 3.032%.
In the European debt market, the benchmark 10 year yields are trading a bit higher.
