From Marc to Market:
Overview: After yesterday's setback in North America, the greenback remains under modest pressure today. It is lower against all the G10 currencies. The dollar also is softer against most emerging market currencies. The dollar was fixed at a new low for the year against the Chinese yuan. The yuan has a five-day advance in tow, the longest rally since last September. Today, the US raises $185 bln in bills and sells $44 bln seven-year notes. The US sees a possible slight upward revision in Q2 GDP (3.1% vs. 3.0%) and weekly jobless claims. Federal Reserve Governor Waller speaks after the markets closed.
The large equity markets in the Asia Pacific region were mixed. The rally in mainland shares continues, but Hong Kong and the index of mainland companies that trade there fell. India, which was on holiday yesterday, when the new US tariffs went into effect, saw stocks comes under pressure today. Europe's Stoxx 600 eked out a 0.1% gain yesterday and is straddling unchanged levels today, waiting perhaps for directional cues from the US, where the index futures are also little changed. Benchmark 10-year yields played catch-up today after the rally in the US yesterday. European yields are mostly softer, though the survival of the Dutch government of a confidence vote has seen little reaction. While the French government is still on tenterhooks, the 10-year French yield is down the most in Europe today (~2.5 bp). The 10-year US Treasury yield is a little softer, slightly below 4.23%. Gold is firm around $3400, its best level in almost three weeks, while October WTI is softer in a roughly half-dollar range below $64....
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