From Marc to Market:
Overview: The US dollar is stabilizing most of the G10 currencies today after its recent losses. As the North American markets are set to open, the greenback is posting minor gains against the G10 currencies but the Japanese yen and Australian dollar. The news stream is light. The market has lifted the odds of a Bank of Japan rate hike later this month, while a jump in October household spending in Australia has sparked speculation in the futures market that the central bank will be hiking rates in a year. Most emerging market currencies are softer. In an unusual twist, the Indian rupee is the strongest after the central bank intervened, after it reached a record low. The PBOC set the dollar's reference rate at a new low since last October.
Equities are mostly firmer. The Nikkei jumped 2.3% in Japan to lead the region. Among the large bourses, South Korea's Kospi was the only one that did not rally today. In China, the CSI 300 rose but both the Shanghai and Shenzhen composites slipped. Europe's Stoxx 600 is posting its largest gain of the week (~0.3) and is rising for eighth session in the past nine. US index futures are virtually flat. Japanese bonds sold off, with the 10-year yield jumping four basis points, though the 30- and 40-year yields eased. European yields are slightly firmer, though the two-basis point decline in the 10-year Gilt is an outlier. The 10-year US Treasury yield is about 1.5 bp high to approach 4.08%. Gold is little changed around $4200. Meanwhile, January WTI is in the middle of the $58-$60 range that has dominated for the past several sessions....
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