From Marc Chandler at Bannockburn Global Forex:
Overview: The stronger than expected US jobs report triggered a 20 bp jump in the US two-year yield and sent the greenback broadly higher. The market slashed the probability that the Fed would cut by 75 bp in Q4. There are now slightly less than 50 bp discounted in the Fed funds futures strip. US rates have continued to back up today, and both the two- and 10-year yields traded above 4% today. The greenback is mostly firmer, though the yen, Swiss franc, and Norwegian krone are resilient. Sterling is leading the decliners with about a 0.35% loss. Dismal German factory orders added to the weight on the euro, which is hovering near the pre-weekend low of $1.0950. Most emerging market currencies are softer, but the Mexican peso and the South African rand are bucking the move with around 0.3% gains.
Asia Pacific equities rally. The index of mainland shares that trade in Hong Kong rose another 2% today. Japan, South Korea, and Taiwan equities rose over 1%. Among the large markets, only India failed to advance. However, European and US equities are heavy. The Stoxx 600 is giving back most of the 0.45% gained before the weekend. US index futures are around 0.50%-0.75% lower. The rise in US rates is tugging global rates higher. European benchmark 10-year rates are 2-5 bp higher. The 10-year JGB yield rose five basis points to 0.92%. Despite the mostly firmer dollar and higher rates, gold is firmer, albeit within the pre-weekend range. The Middle East war is lifting crude oil prices. November WTI rose 9% last week and is up about 2.3% today to trade above $76. It is approaching the August high near $77.50....
....MUCH MORE
