From Marc to Market:
Overview: We suspect that if Martians read the FOMC statement, which was nearly identical to the September statement and listened to Chair Powell, they would conclude there was nothing new. Yet, the market habitually hears Powell as dovish and this has weighed on rates and the dollar, while lifting risk appetites. Follow-through selling of the greenback has dragged it lower against all the major currencies, with the Antipodean leading the way, and nearly all the emerging market currencies (but the Chinese yuan, Russian ruble, and Turkish lira). Further dollar losses may be limited by the stretched intraday momentum and the proximity of tomorrow 's US employment report.
Asia Pacific equity markets except China advanced today, with several bourses up over 1%. Europe's Stoxx 600 is rising for the fourth consecutive session and its 1.5% gain, if sustained would be the most in nearly four weeks. US equities are also poised to extend yesterday's gains. Bonds are rallying, driving down yields, three basis points in Japan, and around 5-9 bp in Europe. The 10-year US Treasury yield is off a couple of basis points to around 4.71%, the lowest since October 17. It settled yesterday below the 20-day moving average for the first time in two months. Given the dollar's setback and the lower yields, one might have expected gold to be higher. The yellow metal is firm but below yesterday's high near $1992.
Asia Pacific
Without putting a fine point on it, Japan is in a pickle....
....MUCH MORE
