One day before the ECB meeting tomorrow, the major European indices are closing lower on the day. The ECB is expected to keep rates unchanged as they and the asset purchase program and gear up for the rate launch in July. Traders will be looking for clues on whether the Hawks will be successful in tilting the bias toward a 50 basis point hike potentially in July. The Reserve Bank of Australia raise rates by a greater than expected 50 basis points yesterday and the Bank of India also raise rates by a greater than expected 50 basis points today

The closing levels are showing:

  • German DAX, -110.61 points or -0.76% at 14446
  • France's CAC -51.72 points or -0.8% at 6448.84
  • UK's FTSE 100 -5.93 points or -0.08% at 7593.01
  • Spain's Ibex unchanged at 8842.71
  • Italy's FTSE MIB -133 points or -0.55% at 24233

Looking around other markets as London/European traders look to exit shows:

  • Spot gold is trading up $5.68 or 0.31% at $1857.60.
  • Spot silver is down 5.5 cents or -0.25% at $22.19
  • WTI crude oil futures are higher despite a surprise build at the weekly inventory data. Crude oil is trading at $21.50. That's up $2.10 on the day
  • Natural gas traded to a new cycle high at $9.65 today. It is currently trading at $9.58 up $0.25 or 2.68%. That is still not good news for inflation
  • The price bitcoin trades at $30,473 – near the middle of the days trading range. The low for the day came in at $29,831 while the high for the day was at $31,310.

A look at the US stock market is showing mixed results:

  • Dow industrial average is trading down -54 points or 0-0.16% at 33126
  • S&P index is down -6.92 points or -0.17% at 4153.40
  • NASDAQ index is up 33.89 points or 0.28% at 12209.29
  • Russell 2000 is down 6.63 points or -0.35% at 1912.97

In the US debt market yields are higher by about 3 basis points. The US treasury will auction off 10 year notes at 1 PM ET.

  • 2 year 2.757%, +2.3 basis points
  • 5 year 3.02%, +3.8 basis points
  • 10 year 3.010%, +4.0 basis points. The 10 year yield is getting closer to its cycle high of 3.203%. It traded as low as 2.706% last week
  • 30 year 3.165%, +4.4 basis points

In the forex market, the EUR remains the strongest of the major currencies while the JPY is the weakest.

The strongest to weakest of the major currencies

The