From Marc Chandler at Bannockburn Global Forex:
Overview: A combination the US and China moving away from the trade brink, more US trade agreements (and frameworks) in Southeast Asia (Cambodia, Thailand, Vietnam, and Malaysia), and a strong showing by Milei's party in Argentina have boosted risk appetites in today's activity. The US S&P 500 and Nasdaq are poised to gap higher for the second consecutive session. The greenback is mostly softer but if were not for the Australian dollar's strength (~0.6%), encouraged by less than dovish comments by the central bank governor, the other G10 currencies are up less than 0.2% and the Swiss franc is the laggard, off 0.1%. Most emerging market currencies are also stronger. The PBOC set the dollar's reference rate at a new low since the middle of October 2024 (CNY7.0881 vs. CNY7.0928 before the weekend).
Equities among the large markets in the Asia Pacific region rallied strongly today. The Nikkei and South Korea's Kospi gained around 2.5%, while China, Hong Kong, and Taiwan gained more than 1%. Indonesia and Vietnam were notable exceptions falling by around 1.8%. Europe's Stoxx 600 is nursing a small loss (clocks were turned back by an hour yesterday), while the bond markets are narrowly mixed. The 10-year US Treasury yield is up nearly two basis points to 4.02%. Canada's 10-year yield is slightly softer. Gold has been sold to a three-day low near $4025 after finishing last week near $4113. Last week's low was near $4000, and a break would likely trigger another round of liquidation. December WTI recorded the month's high before the weekend (~$62.60) but has come under pressure today. It has been sold to about $60.65 and is now hovering around $61.00....
....MUCH MORE
