From Marc to Market:
Overview: It might not have seemed that way in the cloud of hours following the FOMC conclusion, but risk appetites are taking the day off. Asia Pacific equites were mixed, but Europe’s Stoxx 600 is off nearly 2% to completely give back yesterday’s gains, which were the first in seven sessions. US futures are off 2-3%. Benchmark 10-year yields have jumped and are mostly 15-18 bp higher in Europe and the US. The dollar is broadly higher. Among the majors, the Swiss franc, bolstered by the SNB’s largely unexpected decision to hike rates by an aggressive 50 bp, is the strongest currency (~1.5%) followed by the Japanese yen (0.8%). The Scandis and dollar bloc are suffering the most. Among the emerging market currency complex, the free-floating accessible currencies, like the Mexican peso and South African rand have been tagged the hardest.
Gold is consolidating around $1830, while July WTI is trading near two-week lows below $115. It peaked a couple of days ago near $123.70. US natgas is up 3% for the second consecutive day. The combination of the LNG fires in Texas that supplies about 10% of Europe’s natgas and Russia playing games is sparking a huge rally in Europe’s benchmark. It is up 13% today after more than 19% yesterday and nearly 15.5% on Tuesday. Iron ore fell for the sixth session and is off almost 12% in this run. Copper is poised for an outside down day. July wheat is stabilizing after falling for the past two sessions....
....MUCH MORE
