From Marc Chandler at Bannockburn Global Forex:
Overview: The pendulum between fear and greed is swinging toward the former today. The large write-downs at a couple of US regional banks follow high-profile collapses of Tricolor and First Brands. They play on fears of mounting late-cycle stress. US bank reserves have also fallen through a key threshold ($3 trillion) and some fear a repeat of 2019. Washington and Beijing have ramped up the trade tensions, and the US federal government remains closed. US rates have fallen sharply, and the Dollar Index is having its worst week in a little more than two months. The greenback is mixed against the G10 currencies, with the Antipodeans and Scandis nursing losses, while the Swiss franc and are the leaders. Emerging market currencies are mostly lower, while the PBOC set the dollar's fix at a new low for the year.
Equity markets are under pressure. Japanese, Chinese, Hong Kong, and Taiwanese indices tumbled 1%-2.7% today. South Korea's Kospi and India's main indices were notable exceptions. If sustained, the 1.65% loss being posted by the Stoxx 600 in Europe would be the largest loss since August 1. US index futures are threatening to gap lower at the opening. Benchmark 10-year yields are as much as three basis points lower in Europe. The US 10-year Treasury yield is near 3.95%. The risk-off mood looks set to challenge the US-Argentina resolve. Gold climbed to a new record near $4380. It settled last week slightly below $4018. December WTI has extended its recent losses and approached $56 today, its lowest since May 5.
USD: The Dollar Index's upside momentum since the September 17 FOMC meeting appears to have ended last week near 99.55....
....MUCH MORE
