From Marc to Market:
Overview: The markets are mostly treading water ahead of the FOMC decision later today. Tech stocks tumbled in Hong Kong and the Hang Seng fell a little more than 1%, while India was the worst performer in the region falling over 2% following an unexpected and intra-meeting hike by the Reserve Bank of India. It raised the repo rate to 4.4% from 4.0%. Europe's Stoxx 600 is a little lower and has been unable to close the gap from Monday created from the lower opening. US futures are firm. A gain today would be the third in a row for the S&P 500 and NASDAQ and the longest streak since March. The US 10-year yield is little changed near 2.96%, while European benchmark yields are 3-4 bp higher. The US dollar is mostly heavier, with the dollar-bloc currencies taking the lead. Norway's krone and the Swiss franc are trading lower. Norway's central bank meets tomorrow and is expected to hold until June. Most emerging market currencies are firm against the US dollar. The notable exceptions today are the Turkish lira, the Philippine peso, and the South African rand.
Turning to commodities, gold is steadying after yesterday’s test on $1850. It needs to resurface above $1878 to signal a low is in place. June WTI is firm and set a new three-day high near $106.50. US natgas price is lower for the fourth session, while Europe's benchmark has jumped 6.5% after yesterday's 1% gain. Iron ore fell for a third session, while copper is edging higher. July wheat is stabilizing after falling for the past five sessions.
Asia PacificChina's markets re-open tomorrow. It will report Caixin service and composite PMI. The economy is reeling, and the composite will likely fall toward 40 (below 50 means that output is falling). The situation may get worse. The Shanghai lockdown has not been fully lifted and elements are spreading to Beijing. Reports suggest that as many as 60 metro stops (15%) have been shut and nearly 160 bus routes altered. Zhengzhou, a city of around 12.6 mln people has been locked down....
....MUCH MORE
