From Marc to Market:
Overview: The US dollar is having one of toughest days of the year. It has been sold across the board and taken out key levels like parity in the euro, $1.15 in sterling, and CAD1.36. The Chinese yuan surged over 1%. Chinese officials promised healthy bond and stock markets. There is some talk that the PBOC may have intervened directly in the forex market. Large bourses in the Asia Pacific region rallied and the CSI 300 rose by 0.8%, its first gain of the week. After rising by around 2.8% over the past two sessions, Europe’s Stoxx 600 is slightly lower. A disappointing batch of corporate earnings is weighing on US futures. The US 10-year yield is around four basis points lower at 4.06%, while European yields are mostly 2-4 bp higher.
A softer dollar helped lift gold to two-week highs near $1675. It is up 1% on the day in Europe. December WTI is firm near $86. US natgas has steadied after surging around 12.5% in the past couple of sessions. The negative price reported for spot in Texas is a reflection of the strong supply and limited pipeline capacity. Europe’s benchmark fell 16% on Monday and rose 3.1% yesterday. It is up around 2.5% today. Iron ore fell 2.5% today, its largest decline this month, and follows a 2% loss yesterday. December copper is up almost 2% today after losing 2.3% over the past two sessions. December wheat is also snapped a two-day decline and is up about 0.5% today....
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