US stocks are higher. Yields rebound modestly.
As North American traders enter for the day the USD is the strongest. The NZD is the weakest of the majors. The economic calendar is light with only the Univ. of Michigan sentiment index due at 10 AM ET. The weekly Baker Hughes rig count will be released later in the day (at 1 PM). The G7 meeting will take place today and tomorrow with potential for geopolitical commentary. The US stocks are higher in pre-market trading. The US yields are higher after yesterdays sharp declines despite the stronger than expected CPI data.
The ranges and changes charts below are showing the EURUSD moving to new lows and that currency, making the most noise today (all EUR pairs are at lows). The AUDUSD, NZDUSD and USDCAD are also near dollar high levels after reversing earlier declines. There is a dollar run higher as North American traders enter for the day.
A snapshot of the other markets as trading begins shows:
- Spot gold is moving lower in reaction to the higher dollar. It is now down $-9.85 or -0.52% at $1888.83.
- Spot silver is up nine cents or 0.34% at $28.08
- WTI crude oil futures are trading down three cents or -0.04% at $70.26.
- Bitcoin is trading up $640 or 1.75% at $37,112
In the premarket for US stocks, the major indices are trading higher after yesterday’s rise.
- Dow, +88 point after yesterday’s 19.1 point gain
- S&P up six points after yesterday’s 19.63 point gain and record close
- NASDAQ up 21 points after yesterday’s 108.58 point gain.
In the European markets, the major indices are also higher:
- German DAX +0.5%
- France’s CAC, +0.7%
- UK’s FTSE 100, +0.5%
- Spain’s Ibex, +0.5%
- Italy’s FTSE MIB, +0.2%
in the US debt market, the major indices are higher after yesterday’s sharp declines so the 10 year yield moved from a high of 1.53% to a low of 1.437%. Today the 10 year has risen to 1.452% at the highs. It is currently trading at 1.45% just off that level, but still comfortably below the 1.5% level..
In the European debt market, the yields are going the other way with the UK 10 year down -4.3 basis points and Italians 10 year down -4.5 basis points. The lower yields seem to be contributed to the low euro as well.