From Marc Chandler at Bannockburn Global Forex:
Overview: The prospect that the longest US government shutdown in history may end in the next few days has bolstered risk appetites, driven equities broadly higher and left the dollar non-plussed. The greenback is mixed against the G10 currencies. The Japanese yen, which appears have been dragged lower by the jump in US rates. The dollar-bloc currencies and Scandis are leading the move against the dollar. Among emerging market currencies, the Indian rupee, Turkish lira, Thai baht, and a few central European currencies are nursing minor losses. The South African rand, Malaysian ringgit, South Korean won lead the complex higher.
Several large bourses in the Asia Pacific region rose more than 1% today, including the Nikkei, Hang Seng, and South Korea's Kospi. A potential cut in the dividend tax in South Korea and a likely increase in the domestic equity allocation by a pension fund, lifted the Kospi by 3%. Europe's Stoxx 600 is 1.4% higher through the morning turnover. It is sustained it would be the largest advance in six months. The S&P 500 futures are trading nearly 1% better, and the Nasdaq futures are up around 1.5%. Asia Pacific benchmark 10-year rates rose 2-4 bp, but in Europe, they are decidedly mixed, with peripheral premiums narrowing against Germany. The 10-year US Treasury yield is hovering slightly below 4.13%. Last week's high was near 4.16% and last month's high was closer to 4.20%. Gold is up 2% today after falling for the past three weeks. It has risen through the 20-day moving average (~$4080) for the first time in more than two weeks. The next target may be near $4135. December WTI is trading quietly, inside last Friday's range, which was inside last Thursday's (~$58.85-$60.50)....
....MUCH MORE
