The USD is the strongest and the GBP is the weakest as the NA session begins. The gains in the greenback are concentrated vs the commodity currencies (risk on) and the GBP as higher yields and economic/fiscal anxiety weight on the pound. The GBPUSD is down -0.58% in the morning snapshot. That is the biggest mover on the winners and losers board today.
US stocks are lower in pre-market trading. European shares are also lower (the Nikkei did rise while the Shanghai index fell today). Crude oil prices are lower by around 0.55% as the market digests the OPEC+ move which cut output by 2M barrels. The actual cut is more near 1M BPD as most OPEC nations are already producing below their quotas. Gas prices are back on the rise and US inventories from EIA dropped by 1.356M barrels yesterday. The expectations was for a build of 2.052M barrels. Gasoline inventories also droppec by 4.728M barrels vs an expected draw of 1.334M. Pres Biden said that he has not decided if he would continue the SPR adds
US yields are higher. US stocks are lower for the 2nd consecutive day (although they did erase most of the declines seen intraday yesterday by the close).
German Factory orders were much weaker than expectations today (-2.4% vs -0.8% est). EU retail sales came in as expected at -0.3% but it was still negative.
The US NFP is one day away with the expectations for 265K. Fed's Waller(Gov), Evans (retiring) and Mester (Cleveland Pres) are all expected to speak today.
IN other markets, a snapshot of the markets are showing.
- Spot gold is trading up $1.12 or 0.07% at $1717.30
- spot silver is changed trading near unchanged at $20.63
- WTI crude oil is trading at $87.32 that's down $0.44 or -0.5%
- Bitcoin is trading little changed at $20,229
in the premarket for US stocks, the major indices are trading lower after yesterdays modest declines:
- Dow industrial average -161 points after yesterdays -42.45 point decline
- S&P index -22 points after yesterdays -7.63 point decline
- NASDAQ index -65 points after yesterdays -27.77 point decline
in the European equity markets, the major indices are also lower for the 2nd consecutive day:
- German DAX, -0.3%
- France's CAC -0.45%
- UK's FTSE 100 -0.8%
- Spain's Ibex -0.54%
- Italy's FTSE MIB -0.9%
In the US debt market, the yields are modestly higher after yesterdays moves to the upside. The 30 year yield is down marginally. The 10 year yield is trading at 3.769%. It traded as low as 3.564% on Tuesday, but is below the recent peak at 4.019% (from September 28).
In the European debt market, the UK 10 year yield is the outlier at +15.5 basis points. Other changes are more modest up and down.
