From Marc to Market:
Overview: The big bond and stock market seen yesterday has continued today. The Reserve Bank of Australia’s reversion to a quarter-point hike stokes hope that the aggressive tightening cycle more broadly is set to slow. The UN’s Conference on Trade and Development became the latest to warn that the synchronized tightening risks a global recession and a prolonged period of stagnation. The large equity markets in the Asia Pacific region rose 2.0%-3.75%. Europe’s Stoxx 600 gapped higher and its is up around 2.2% in late morning turnover, while US futures point to a gap higher opening. Benchmark 10-year yields are off 14-18 bp in the eurozone while 10-year Gilts are off more than 20 bp. The US 10-year Treasury yield is near 3.56%, having peaked on September 28 a little above 4%. The greenback is mixed. The dollar bloc and the Japanese are softer, with the Aussie off around 0.4%. Emerging market currencies are firmer, with the notable exception of the Turkish lira.
There is nothing like lower yields to help gold. A week ago, the yellow metal hit $1615 and today it is pushing above $1700 to reach almost $1711. The next target may be near $1730. Oil is firm ahead of OPEC+ decision tomorrow, where a sharp output cut is expected. December WTI is near yesterday’s highs around $83.50. US natgas is stabilizing after falling nearly 6% of the past two sessions on strong US production. Europe’s natgas benchmark is off 1.6% after rallying 2.4% yesterday. Iron ore also firmed. It gained nearly 1.5%, its biggest advance in a week. December copper recover to trade near $350 before stalling. December wheat is consolidating after rising almost 4.7% last week....
....MUCH MORE
