The NZD is the strongest and the JPY is the weakest as the NA session begins. The USD is mostly lower with most declines coming vs the CAD, NZD and AUD. The greenback is higher vs the JPY and the EUR.
UK had higher retail sales. In Germany, their PPI was higher by 2.8% vs 1.2% estimate and is up 33.5% YoY. At least the MoM was down from 4.9% last month. Higher inflation is helping to tilt the tightening bias pressure on the ECB.
China shares rose on the back of a decline in 5 year mortgage rate by 0.15%. In a market looking for anything positive, that cut has provided a boost. US stocks are higher , but the major indices are still on track for declines for the trading week (7th in a row for the S&P and Nasdaq and 8th in a row for the Dow).
Meanwhile, love him or hate him, Jim Cramer is calling on the Fed to tighten by 100 basis points. He went in the water and will continue to talk about it. The Fed officials are speaking to 50 basis point hikes, but the Target earnings yesterday suggested that pipeline inflation is still ahead. That is not a good thing with inflation at 8.5%.
A snapshot of other markets is showing:
- Spot gold is trading up to dollars and $0.60 or 0.14% at $1843.50
- Spot silver is up six cents or 0.31% of $21.95
- WTI crude oil is trading up $0.41 or 0.37% $110.30
- Bitcoin is trading at $30,322 that's up $343 or 1.15%
In the premarket for US stocks, the futures are implying a higher open opening after yesterdays a tumble lower
- Dow industrial average up 259 points after yesterday's -236.94 point decline
- S&P index is up 41 points after yesterday's -22.89 point decline
- NASDAQ index up 167 points after yesterday's -29.66 point decline
In the European equity markets the major indices are also trading higher after yesterday's declines
- German DAX, +1.95%
- France's CAC, +1.57%
- UK's FTSE 100, +1.96%
- Spain's Ibex, +15%
- Italy's FTSE MIB, +1.5%
In the US debt market, yields are higher by a basic point or two. Yields are still lower on the week, and down for the second consecutive week
In the European debt market, benchmark 10 year yields are markedly higher with gains of 4.7 basis points to 10.4 basis points as ECB tightening expectations increase:
