From Marc to Market:
Overview: The busy week is off to a slow start as Japan is on holiday and the UK and Canadian markets are closed to honor Queen (Australia will commemorate with a holiday on Thursday). Nevertheless, the sell-off in equities continues and the US dollar is firm. Most of the large markets in Asia fell. India is a notable exception. Its benchmark rose for the first time in four sessions, helped by bank shares and Infosys. Europe’s Stoxx 600 is off for the fifth consecutive session, and US futures are trading broadly lower. European benchmark yields are mostly 3-6 bp higher. US Treasuries have not trade in cash market, while the December futures point to a couple basis points higher yield. The dollar is rising against most currencies today. The Antipodeans and Scandis are bearing the brunt. Note that Sweden could hike by as much as 100 bp tomorrow and Norway is expected to raise rate by 50 bp on Thursday. The Swiss franc is the most resilient of the major currencies, off about 0.20%. The SNB is seen lifting its deposit rate 75 bp on Thursday. Emerging market currencies are weaker, and the JP Morgan Emerging Market Currency Index is off around 0.2%. It has fallen for the last three consecutive weeks.
Gold is giving back its pre-weekend gain of almost $10 and looks set to retest the $1650 area. December WTI is trading below last week’s lows and near $82.40 is poised to test the month’s low near $80. Natgas is trading lower. In the US, it is off 1.7% after falling more than 15% in the last two sessions. It is trading near last month’s low. Europe’s benchmark is off 4.5%. It also fell about 15% in the last two sessions. It is back at late July levels. Iron ore fell for the fourth session in a row. Last week, it fell by 4.8%. December copper is off nearly 1%. It fell 1.45% last week. Finally, December wheat is off 2% after gaining 1.75% before the weekend....
....MUCH MORE
