From Marc to Market:
Overview: The Federal Reserve's 50 bp rate cut has made for a volatile 15 hours of so in the foreign exchange market. As North American traders return to their posts, the greenback is heavy. They will find that only the yen and Russian ruble are softer. Norway delivered a hawkish hold, and the krone leads the G10 currencies with more than a 1% gain. Australia's employment data was sufficiently strong that the Reserve Bank of Australia will likely reiterate its hawkish hold stance and the Aussie is up 1% to be flirting with the year's high.
Although US equities settled lower yesterday, the Fed's move sent global equities higher, and the US index futures are trading sharply higher. In the Asia Pacific region, Japanese and Hong Kong indices rose by more than 2% to lead the region. Europe's Stoxx 600 is up 1.2%, which is sustained would be the largest advance in a little over a month. Benchmark 10-year yields rose in the Asia Pacific region and are mostly a little higher in Europe. The 10-year Treasury yield is flat near 3.70%. Gold remains within spitting distance of the record-high set yesterday near $2600. November WTI is extended its recovery from below $65 last week. It is straddling $71, with the weaker dollar and a widening war in the Middle East lending support. It has not settled above $70 this month, yet....
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