From Marc to Market:
Overview: Stocks are rallying. Nearly all the large bourses in the Asia Pacific region rose with China being the noted exception. In Europe, the Stoxx 600 is up over 1% to post gains for the third consecutive session, the longest advance this month. US futures are up around 2% as they return from yesterday’s holiday. While the US 10-year yield has edged up 3.26%, European yields are mostly softer, with the peripheral premiums falling more than core rates. The US dollar is mostly heavier. The Scandis are leading the move, ahead of Norway’s expected 25 bp hike on Thursday. The yen is the only G10 currency that is not gaining on the greenback today. Emerging market currencies are also mostly higher, lead by central Europe and the South African rand.
Gold appears to be going no place quickly and is trading within the broad range set last Thursday. Today, it is in $5-range on either side of $1837. After trading as low at $106.40 yesterday, in a big outside down day, August WTI has returned bid today and popped back above $110. A move above $112 could sign run at the highs (~$121). US natgas is off a little more than 3% after plummeting 21.5% last week. Europe’s newest gas shock continues. Its benchmark is up another 2.2% today to bring the seven-day surge to 53%. For its part, iron ore snapped an 8-day, 24% drop with an almost 3.7% rally today. July copper has fallen by more than 10% over the past two weeks but is up 0.7% today. July wheat extended last week’s 3.4% fall initially and reached its lowest level in two months earlier today before recovering. It remains around 0.7% below last week’s settlement....
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