From Marc Chandler at Bannockburn Global Forex:
Overview: Yesterday’s strong US equity gains failed to carry over into today’s session. Japanese and Australian shares fared the best among the large Asia Pacific market, with the Nikkei off less than 0.4% and the ASX off less than 0.25%. However, China’s markets were off more than 1%, while Taiwan and South Korea indices slumped more than 2%. India is off nearly 1.5%. Europe’s Stoxx 600 is down 1.5% and is giving back all of its gains in the past three sessions. US futures are approaching a 2% fall. The US 10-year yield is down about seven basis points to 3.20%. European yields are mostly 8-12 bp lower, but the peripheral premium is widening over the core. The UK's somewhat firmer than expected inflation report did not prevent the 10-year Gilt yield from tumbling more than 12 bp today. The yen and Swiss franc are the most resilient against the dollar today, but the other major currencies, led by the Antipodean and Norwegian krone are 1%+ lower. Leaving aside the Russian rouble, most emerging market currencies are lower, including the Czech koruna, where the central bank is expected to lift the repo rate by over 100 bp today.
Gold is on the defensive as it trades near a four-day low below $1825. Last week’s low was around $20 lower. August WTI is taking another leg down after consolidating yesterday. It has traded at a one-month low around $103.20 before steadying. US natgas is lower for the third consecutive session and is also hovering around one-month lows. The surge in Europe’s benchmark continued with the eighth day of gains. Iron ore bounced yesterday to snap an eight-day slide but is giving it all back plus some today with a 5.85% drop. Copper is off nearly 3.5% to new 15-month lows. July wheat is jumping back almost 3% after falling almost 10% over the past two sessions....
....MUCH MORE
