From Marc to Market:
Overview: Weak US consumer confidence, especially regarding the labor market boosted speculation of another half-point Fed cut in November when the central bank meets again. This weighed on the dollar. Sterling and the Australian dollar rose to new 2 1/2-year highs. The PBOC followed up yesterday's package with a 30 bp cut in the one-year Medium-Term Lending rate. After extending its losses earlier today, the dollar has steadied and turned higher against most of the G10 currencies. Sweden delivered the expected quarter-point rate cut, and the Riksbank signaled it may deliver 75 bp in cuts in the last two meetings of the year. Recently, the Bank of Canada Governor Macklem suggested that it too could accelerate the pace of cuts. Emerging market currencies are mixed. Asian currencies did well but central European currencies are trading with a heavier bias.
Chinese equities extended yesterday's rally, and Taiwan and Hong Kong joined, but most of the other large bourses in the Asia Pacific area fell. Europe's Stoxx 600 is off marginally, and US index futures are trading with a heavier bias. Bonds are also trading lower. Benchmark 10-year yields are up mostly 1-2 bp in Europe, but Sweden's 10-year yield is up four basis points. The 10-year US Treasury yield is up a couple of basis points to 3.75%. The yield has risen in five of the past six sessions. Gold is little changed after setting a record a little above $2670. November WTI is consolidating quietly on a $71-handle after reaching $72.40 yesterday, its best level since September 3....
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