From Marc to Market:
Overview: The precipitous fall in equities continues while the dollar remains buoyant. Nvidia’s warnings about US curbs on sales to China and the first drop in South Korea’s chip exports in two years, coupled with the largest lockdown in China since Shanghai encouraged investors to move to the sidelines. Most of the major equity markets in the Asia Pacific region were off 1-2%. The Stoxx 600 is off for the fifth consecutive session and the second session of more than a 1% drop. US futures point to a gap lower opening of the US indices today. The 10-year US Treasury yield is flat around 3.18%, though the two-year rose to a new high above 3.50% before easing a bit. The greenback is firm. It set a new 24-year high against the yen and a new two-year high against sterling. Nearly all the emerging market currencies are lower today, as well.
The $1700 level held in gold, but it continues to trade heavily and threatens to extend its loss for the fifth consecutive session. October WTI is below $88.50, bringing its three-day tumble to nearly $9 a barrel, despite OPEC+ now warning of a shortage of supply next year, switched from a previously anticipated surplus. US natgas is giving back yesterday’s almost 1% gain, while the European benchmark is snapping a four-day drop. China’s lockdown helped send iron ore more than 5% lower to approach the July low near $95. December copper is off 1.8%, extending its drop for the fifth consecutive session. December wheat bounced 1.4% yesterday but has come back offered today and is off nearly 1%....
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