From Marc to Market:
Overview: A GBP130 bln initiative by the new UK government to protect households from the surge in power costs helped lift sterling from 2.5-year lows. The Reserve Bank of Australia delivered the expected 50 bp rate hike, but the prospect of smaller moves going forward saw the Australian dollar sold through yesterday’s lows. The MSCI Asia Pacific Index fell for the third consecutive session yesterday but is mixed today. Japanese markets themselves were mixed, and China, South Korea, and Taiwan advanced. Europe’s Stoxx 600 is steadying today after falling by 0.6% yesterday. US futures point to a firm open but are off their earlier highs. US rates are 6-7 bp higher while most European benchmark yields are a little softer. The 10-year Gilt is pushing above 2.95% and looks poised to push above 3% for the first time since early 2014. Sterling is the strongest of the major currencies, up about 0.6% against the US dollar. The Antipodeans and yen are the weakest of the majors. The yen is trading at new 24-year lows. Emerging market currencies are mixed today, with central European currencies doing best. Asian currencies are mostly lower, except the Indonesian rupiah. The Chinese yuan’s 0.35% loss is the weakest.
Gold reached a six-day high near $1727 but has come off to trade below $1712. October WTI briefly poked above $90 but has been turned back and is trading near $87. It has found a base in recent weeks near $85. US natgas fell 5.1% before the long holiday weekend and is trading with a slightly heavier bias. Europe’s benchmark fell 16.4% before the weekend and ahead of Gazprom’s announced cut-off. It rallied 17% yesterday and is off nearly 11% today. Iron ore fell nearly 1% today after rallying almost 3.6% yesterday. It remained below the $100 threshold for the fourth session. December copper edged higher ahead of the weekend, snapping a five-day drop. It is up 1.3% today. December wheat was up 2.1% before the weekend and is off about 0.6% today....
....MUCH MORE
And September 5: "What Happened Monday"
