From Marc to Market:
Overview: The capital markets are quiet today. Equity markets and bond yields have a slight upside bias, while the dollar is little changed. Despite reports that the lockdown in Chengdu is easing, Chinese equities underperformed in the Asia Pacific region. Japan, Hong Kong, Taiwan, and Australia eked out modest gains. After sliding around 2.4% over the past two sessions, the Stoxx 600 is up fractionally. US futures have edged slightly higher. The US 10-year yield is firmer by around three basis points near 3.44%, while European benchmark yields are mostly 1-2 bp firmer. Most of the major currencies are +/- 0.2% changed on the day. A similar picture is evident among emerging market currencies.
Gold settled below $1700 yesterday and has continued to retreat today. It has tested the $1685 area to approach the year’s low set in late July near $1680. The next key chart area may be closer to $1676, the 200-day moving average, which the yellow metal has not traded below since late 2018. December WTI has cut yesterday’s 1.3% gain in half and is trading below $87. Rail disruption in the US ahead of the potential strike starting Saturday helped lift the US natgas price over 10% yesterday. It is off 3.3% today. The EC’s reluctance to support a cap on gas prices has seen the European benchmark climb higher. It is up 4.5% today after gaining 8.2% yesterday. Iron ore was practically flat today. It fell almost 2.5% yesterday. December copper has steadied after falling 2.5% over the past two days. December wheat has come back offed after yesterday’s 1.4% advance....
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