"Risk on" flows dominate

The NZD is the strongest and the USD is the weakest as North American traders enter for the day. The movements look like a classic "risk on" variety with both NZD and AUD moving higher and the USD and JPY the weakest. However, there is chatter that the weaker industrial production is giving traders some "sell the dollar" tendencies. NZD meanwhile benefits from the stronger inflation released yesterday. That countries central bank has already tightened by 0.25 basis points and are expected to do more at forthcoming meetings. PS the NZDUSD moved above its 200 day MA today at 0.7097. The AUD played follow the leader despite expectations that the RBA is on hold for some time now, but things are opening up in that country. Today, housing starts and building permits will be released at 8:30 AM, but Fed speak will also be a focus with Feds Harker, Daly, Barkin, Bowman, Bostic and Waller all scheduled to speak. Netflix will release earnings after the close.

In other markets:

  • Spot gold is trading up $17.21 or 0.97% at $1781.54
  • Spot silver is up $0.72 or 3.06% at $23.88
  • WTI crude oil futures are trading up $0.90 or 1.1% at $83.23
  • Bitcoin is trading up about $190 and $62,224

In the premarket for US stocks, the major indices are higher after mixed results yesterday (Dow fell breaking a two day win streak). The futures are implying:

  • Dow industrial average +175.39 points after yesterday's -36.15 point decline
  • NASDAQ index +65 points after yesterday's 124.47 point gain
  • S&P index +21.5 points after yesterday's 15.09 point gain

In the European equity markets, the major indices are also trading modestly higher after declines across the board yesterday:

  • German DAX, +0.15%
  • France's CAC, unchanged
  • UK's FTSE 100, +0.1%
  • Spain's Ibex, +0.6%
  • Italy's FTSE MIB +0.3%

In the US debt market, the benchmark yields are mixed with the short and lower today and the longer end the higher (steeper yield curve).

US yields are mixed

In the European debt market, the yields are trading higher with the German tenure trading up -0.125%, up 2.4 basis points. That is near it's high for the day and well off the low at -0.173%.

European yields are higher