The strongest to the weakest of the major currencies
The EUR is the strongest and the JPY is the weakest as the North American session begins. China reported an -8.7 decline in exports and imports fell -10.6%. If you have 0-Covid policy that is what you get. Apple is looking to move out of China. Chip manufacturing is coming to the US. Other companies are probably thinking of moving out if they haven't already. Workers there are revolting. The government did announce more loosening of restrictions that limited the ability of local governments to lock down businesses. We will see.
Bank of Canada announces a rate decision today. The USDCAD move sharply higher (lower CAD) over the last two trading days (over 300 pips higher), and extended modestly higher vs the USD today (CAD is down -0.21). There is debate on 25 or 50 (see Adam preview here), so there is some room to roam (or for disappointment). The market is leaning 25 bps while economists are more focused on 50 bps.
Stocks are lower. Yields are higher. Oil is near unchanged after wiping away the gains from the start of 2021. Gas prices in the US are back to levels seen at the end of 2021.
A snapshot of the markets are showing:
- Spot gold is trading up $2.44 or 0.14% at $1775.14
- Spot silver is trading up $0.17 or 0.78% or $22.34
- WTI crude oil is trading up $0.18 at $74.46
- Bitcoin is trading back below $17000 at $16817. The high reached $17131. The low extended down to $16736.
The premarket for US stocks is showing:
- Dow industrial average -97 points after yesterday's -350.76 point slide
- S&P index -23 points after yesterday's -57.58 point decline
- NASDAQ index -112 points after yesterday's -225.04 point fall
in the European equity markets, the major indices are also lower:
- German DAX, -0.45%
- France's CAC -0.46%
- UK's FTSE 100-0.1%
- Spain's Ibex -0.32%
- Italy's FTSE MIB -0.11%
In the US debt market, the yield curve is steeper with the 10 year up four basis points. The two-year is down modestly:
US fields are mixed
In the European debt market, the benchmark 10 year yields are higher:
