From Marc to Market:
Overview: The start of the new week has not broken the bearish drive lower in equities. Several Asia Pacific centers were closed, including Japan, Taiwan, and South Korea. China’s markets re-opened, and the new US sanctions coupled with the disappointing Caixin service and composite PMI took its toll. The CSI 300 was off 2.2% and the Hang Seng dropped nearly 3%. After falling 1.2% at the end of last week, Europe’s Stoxx 600 gapped lower today and is off almost 0.5%. The US bond market is closed, but stocks are open on this federal holiday. The S&P 500 may open by the pre-weekend low, while the NASDAQ could gap lower. European 10-year bond yields are 3-5 bp lower mostly. UK Gilt yields are higher, despite the new efforts by the Bank of England, and Italy’s benchmark bond is flat. The greenback starts the new week in strong fashion. The Australian dollar is off slightly more than 1% to pace the broad move, while the Norwegian krone ironically appears to have drawn support from its higher-than-expected CPI (6.9% vs. expectations for a decline to 6.2% from 6.5%) and is up about 0.25%. Emerging market currencies are lower, except for the Mexican peso, whose resilience remains remarkable.
Gold is heavier for the fourth consecutive session. It is off about 0.85% at $1680. The next target may be near $1672. December WTI initially extended last week’s gains to around $92.25, its best level since late August, but has been sold since the open and tested the $90.40 area. We see potential toward the $88.50 area over the next day or two. After losing around 3.2% before the weekend, US natgas is off almost 1%. Europe’s benchmark tumbled about 12% in the past two sessions and is off another 1.6% today. Iron ore jumped more than 3%, its biggest rise in a month as China re-opened. Copper has steadied, gaining about 1.3% today after losing 3.3% last Thursday-Friday. December wheat has jumped 4% as Ukrainian shipments are in doubt....
....MUCH MORE
