From Marc to Market:
Overview: The markets wanted to believe that the President Trump and Treasury Secretary Bessent were right, China overreacted with the broadening and tightening of export licensing requirements for critical materials and de-escalation would result. But this does not seem to be the case. The risk-off mood has sent stocks tumbling and bonds rallying. The dollar is mostly firmer. The dollar-bloc currencies, and especially the Australian dollar, and the Scandis, are lower, where the sell-off in oil (Nov WTI is off more than 2%) to its lowest level in four months (~$58) has taken a toll on the Norwegian krone. Most emerging market currencies are lower, led by the Mexican peso's 0.65% pullback. Note that France's Prime Minister Lecornu will present the budget to the National Assembly around 9:00 am ET today, and the euro may be sensitive to its reception.
Despite the US equity rally yesterday, Asia Pacific equities sold off sharply today. The Nikkei is off almost 2.6%, and the Hang Seng was taken for 1.7%. China's CSI 300 fell 1.2%. The only large bourse to gain was Australia's. Europe's Stoxx 600 is giving back yesterday's 0.4% gain, The S&P 500 futures are off around 0.8% and the Nasdaq futures are off a little more than 1%. Benchmark 10-year yields are off most 3-4 basis points in Europe, though the rise in UK unemployment has seen the 10-eyar Gilt yield slide more than six basis points. The 10-year US Treasury yield is nearly three basis points lower to flirt with the 4%, which it has closed below once this year (April's "Liberation Day"). Gold reached a new record near $4180, though silver has reversed lower after reaching almost $53.55. ...
....MUCH MORE
