From Marc to Market:
Overview: The prospect of a more aggressive Federal Reserve policy has spurred a sharp sell-off in global equities and bonds and sent the dollar sharply higher. The large Asia Pacific bourses were off mostly 2%-4%. Europe’s Stoxx 600 is off 2.2%, its fifth consecutive losing session. US futures are off also. The NASDAQ was down 3.5% before the weekend and the S&P 500 fell 2.9%. The dollar rocks. The Scandis and Antipodean currencies are bearing the brunt and are off 1.0%-1.3%. Bond yields are jumping. The 10-year US Treasury yield is up seven basis points at 3.23%, while European yield are 6-13 bp higher, with the peripheral premiums widening sharply. The dollar briefly rose above JPY135 but shed some of those gains and is now up less than 0.2% against the yen. Emerging market currencies are also being beaten up. The Mexican peso, which often acts as a proxy for EM FX is off 2.2%. The South African rand’s 1.4% loss is the second largest today.
Gold is reversing lower after rising briefly above $1878. It is offered now near $1855. July WTI is off $2 to around $118.55. US natgas is off 1.2%, matching the pre-weekend loss. Europe’s benchmark is around 1% firmer. With China’s re-opening stalling, iron ore dropped 3.6% today, equaling the decline over the past two sessions. July copper is down 2.1% after losing 3.6% in the past couple of sessions. July wheat is about 0.7% firmer, recouping the losses in full seen in the second half of last week.
Asia Pacific....
....MUCH MORE
