From Marc to Market:
Overview: The US dollar is mostly lower today. The pendulum has shifted hard in favor of a rate cut next month and this has taken the wind from the dollar's sails. The New Zealand dollar is leading today's move after the central bank cut rates for perhaps the last time in the cycle. The Australian dollar also extended its gains on the back of firmer than expected October CPI. The other G10 currencies are posting minor gains ahead of the North American open but the Japanese yen, which is off about 0.3%. Most emerging market currencies are also firmer. The rise of the Chinese yuan to new highs for the year was reaffirmed by the PBOC, which lowered the dollar's reference rate for the fourth consecutive session. Although the US has several high-frequency data reports, the highlight is the Fed's Beige Book late in the North American session. And still to come is the UK's budget.
Equities are rallying today. All the large bourses in the Asia Pacific rallied. Indices in Japan, Taiwan, South Korea, and India rose by at least 1% today. The regional index is posting its third consecutive rise, as is Europe's Stoxx 600, which is up about 0.40% through most of the European morning. US index futures are modestly higher, set to extend their rallies. Benchmark 10-year yields jumped in Australia and New Zealand but are practically flat in Europe. The 10-year UK Gilt is unchanged, near 4.49%. The 10-year US Treasury yield, which dipped below 4% yesterday for the first time this month, is slightly above there now. Gold is recouping yesterday's minor loss (~0.15%) and is up about 0.7% through the European morning. It stalled near $4170, an eight-day high. January WTI is in about a 30-cent range around $58. Yesterday, it recorded the low for the month, near $57.10. Last month's low was about $56....
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