From Marc Chandler at Bannockburn Global Forex:
Overview: Central banks are committed to combatting inflation even as the economies weaken. This is taking a toll on investor sentiment and is dragging down equities. Outside of China, where the PMI confirms a recovery, and India, where most large bourses in the region were off 1-2%. Europe’s Stoxx 600 snapped a three-day rally yesterday with a 0.65% decline. Near midday, its loss today is approaching 2%. US futures are 1.5%-2.0% lower. Bond yields are falling. The US 10-year is around 3.05%, off 20 bp between yesterday and today. European bond benchmark yields are 4-9 bp lower. The US dollar is mixed, with the yen, Antipodeans, and sterling edging higher, while the Swiss franc, and Scandi are off 0.2%-0.3%, even the Swedish krona, where the central bank delivered a 50 bp hike. A few Asian currencies, including the Chinese yuan, are showing some resilience among emerging market currencies. The Russian rouble is off nearly 4% and the Hungarian forint and Polish zloty are off 0.5%-1.0% to lead the emerging market complex lower.
Gold is bleeding lower and near $1812 is at its lowest level since mid-month. August WTI reversed lower yesterday and is slightly lower today ahead of the OPEC+ decision to ostensibly allow more output but capacity constraints limit the actual output. US natgas is steady while the European benchmark is rising for the third consecutive session. It is up nearly 5% after yesterday’s 6.4% gain. A surplus of Chinese steel is said to be weighing on iron ore prices. It is off 3.25% today after falling 1.25% yesterday. September copper is ending a three-day rally (~1%) and is giving it all back today with a 1.35% pullback. September wheat is soft after slipping 0.65% yesterday....
....MUCH MORE
