Markets more calm as geopolitical tensions ease
The markets are a bit more calm with US stocks point to a higher opening, US yields are down about 0.5 to 1.5 basis points, gold is down marginally and crude is up marginally. To start the day, the snapshot of the winners and losers is showing the CHF is the strongest. The NZD is the weakest. The GBP is also lower after some dovish comments from BOE Carney. The USD is tilting to the upside with gains versus the GBP, NZD and JPY leading the way. The other major currencies versus US dollar are marginally lower or higher.
The GBP pairs did enjoy some upside momentum early on, before giving up and moving lower. Each of the pairs are near GBP lower extremes as NA traders enter. The ranges are also more spikey compared to the other pairs (see charts below). The ranges in the EURUSD and USDCHF are back down to the low levels with 23 pips and 19 pips respectively.
In other markets:
- Spot gold is trading down $4.20 or -0.27% at $1552.45
- WTI crude oil futures are trading up $0.09 or 0.13% at $59.69
In the premarket for US stocks, the futures are implying higher levels
- S&P index is up 16.95 points
- Dow is up 154 points
- NASDAQ is up 62.38 points
In the European markets, the major indices are also trading higher
- German DAX, +1.1%
- France's CAC, +0.25%
- UK's FTSE 100, +0.46%
- Spain's Ibex unchanged
- Italy's FTSE MIB, +0.8%
In the US debt market yields are marginally lower with yields down between -0.2 basis points at -1.2 basis points with a marginally flatter yield curve:
In the benchmark 10 year sector in Europe, yields are mostly lower with the exception of the German 10 year which is up 0.4 basis points. Investors are moving into Italian notes which are down 5 basis points on the day. UK yields are down 2.8 basis points after Carney's more dovish comments.
