There you go all you Scam Dogs and Momo Mamas, central banks injecting, not liquidity but volatility! This truly is the best of all possible worlds.
From Marc to Market:
Overview: Japanese efforts to curb the weakness of the yen provided drama today. What many suspect was intervention before the weekend was wearing off and officials may have sold dollars again today in front of JPY150. Despite initial success, the dollar is back near JPY149.50 as the North American session is about to begin. The end of the Chinese Congress has seen the yuan weaken to new lows. While the large bourses in the Asia Pacific region rose, China and Hong Kong were notable exceptions and foreign investors sold what appears to be a record of mainland shares today. Europe’s Stoxx 600 is seeing early gains pared, while US futures are pointing to a lower opening. The US 10-year yield is a little softer, slightly below 4.20%, while EMU yields are as much as three basis points lower. With Sunak seen as the next PM and austerity returning, Gilts have rallied, and the 10-year yield is off 17 bp. While the US dollar recovers from its pre-weekend slide, sterling is the best performer by being little changed. The Antipodeans have been hit the hardest and are off 1.3%-1.6%. Led by central Europe and the South African rand, most emerging market currencies are also weaker today.
Gold briefly pushed above its 20-day moving average (~$1667) for the first time in a couple of weeks and has been sold off to below $1645. The pre-weekend low was near $1617.50. December WTI is off 1.5% after it rose 0.5% last week. US natgas continues to come off. It is down 2% today, its seventh consecutive decline. It fell 23% last week, which was its ninth consecutive weekly decline. Europe’s natgas benchmark is off 14.8% today, falling below 100 euros for the first time since June. It fell 18.7% last week, its eighth consecutive weekly drop. Iron ore is paring the 1.1% gain seen before the weekend, while December copper has come back offered (~1%) after rallying about 4.5% in the last two sessions. December wheat is off 1.1% today and it is giving back the gains scored in the second half of last week....
....MUCH MORE
