From Marc to Market:
Overview: Asia Pacific equities were mostly lower. China and India bucked the trend. Europe’s Stoxx 600 is steady with no follow through selling after yesterday reversal. US index futures are posting modest gains and are trying to snap a two-day drop. The US 10-year yield is firm at 2.91%, while European benchmark rates are 2-3 bp higher. Asia Pacific bonds were dragged lower by the sell-off in the US yesterday. The dollar is broadly lower. The Swedish krona and sterling are faring best among the majors. The Canadian dollar is the laggard today, little changed near midday in Europe. Emerging market currencies are more mixed. The South Korean won was thumped by 1.2% and the Philippine peso is off by 0.6% to lead the losers, while, leaving aside the rouble, the Hungarian forint is the strongest, up about 0.8%. The central bank hiked the one-week deposit rate by 30 bp to 6.75%.
Gold is extending yesterday’s recovery from around $1828, a two-week low, and is probing the $1855 area. After testing $120 earlier this week, July WTI is trading around $112.50 ahead of the OPEC+ decision on next month’s output. There is speculation that the pact between OPEC and non-OPEC may be unraveling. US natgas jumped 6.75% yesterday, its biggest rise since mid-April. It is a bit firmer today. Europe’s benchmark fell almost 6% yesterday but is bouncing back more than 4% today. Iron ore surged by 5.8% in Singapore and is at its best level in a month. Copper is up 2% and is at levels not seen since late April. July wheat is trying to stabilize after falling more than 10% in the past two sessions....
....MUCH MORE
