The GBP is the strongest of the major currencies while the NZD is the weakest. The USD is mixed with gains versus the JPY, AUD and NZD and declines verse the EUR, GBP, CHF and CAD.
Last week,
- The dollar index (DXY) fell -1.512% which was its largest decline since the week of July 10.
- The US 10-year yield fell -26.5 basis points last week, it's largest decline since the week of March 13 when yields fell -26.7 basis points.
- The broad S&P index surged 5.85%, its largest increase since November 7, 2022
Last week, the focus was the Fed and jobs (mostly). The Federal Reserve Rates kept rates unchanged and gave more of a dovish view of policy in the future on Wednesday. The US jobs report had Goldilocks tendencies which contributed to the trend.
This week, Feds Powell will have an opportunity to reiterate his thoughts after the rate meeting on Wednesday. He speaks on both Wednesday and Thursday of this week.
The war in the Middle East with Israel's Netanyahu rejected cease-fire please until prisoners were released. He did suspend a minister for suggesting dropping a nuclear bomb on Gaza.
Looking at the market, stocks are marginally higher. Yields are higher with gains of 3 – 5 basis points across curve.
A snapshot of the markets as the NA session gets underway shows:
- Crude oil is trading up $1.13 or 1.4% $81.64
- Spot gold is trading down $7.27 or -0.36% at $1984.95
- Spot silver is trading down $0.05 or -0.28% at $23.14
- Bitcoin is trading at $35,235. Over the weekend, the high price reached $35,396. The low price reached $34,495.
In the US stock market, the major indices are trading modestly higher
- Dow Industrial Average futures are implying a gain of 35 points. On Friday, the index rose 222.24 points or 0.66%
- S&P index futures are implying a gain of 7.66 points. On Friday the index rose 40.56 points or 0.94%.
- NASDAQ futures are implying a gain of 27 points. On Friday, the index rose 184.09 points or 1.3%
In the European equity markets, the major indices are trading higher
- German DAX, -0.21%. Last week the index rose 3.42% the largest gain since March 2023
- France's CAC, -0.42%. Last week the index rose 3.71%, it's largest rise since March 2023
- UK's FTSE 100, +0.09%. Last week the index rose 1.73%.
- Spain's Ibex, -0.13%. Last week the index rose 4.21%.
- Italy's FTSE MIB, +0.20% (10 minute delay)
In the Asia Pacific market, major indices were lower:
- Japan's Nikkei index, +2.37%
- China's Shanghai Composite Index, +0.91%
- Hong Kong's Hang Seng index, +1.71%
- Australia's S&P/ASX index, +0.28%
In the US debt market, yields are moving marginally higher:
- US 2Y T-NOTE: 4.886%, +5.4 basis points
- US 5Y T-NOTE: 4.543% +5.6 basis points
- US 10Y T-NOTE: 4.603% +4.6 basis points
- US 30Y BOND: 4.787% +3.5 basis points
- 2 – 10-year spread is at -27.8 basis points
- 2 – 30 year spread is at -9.7 basis points
In the European debt market, benchmark 10-year yields are mostly higher:
