Flow out of tech, interest rates higher, gold lower
As North American traders enter for the day, the USD is the strongest of the majors, while the NZD is the weakest. Interest rates are higher, the dollar is higher, Nasdaq stocks are lower, Dow stocks are higher, gold is lower in what has become a recent Pavlovian reaction in the various markets. Concerns about escalation of Covid in Europe is weighing. Today, Canada will release their employment statistics and the CAD is higher ahead of the report against most currencies with the exception of the USD. US PPI data will be reported at the bottom of the hour as well.
Looking at the changes and ranges, the price action has been above average with the EURUSD, GBPUSD, USDJPY, USDCHF ranges all above their 22 day averages with the North American session left (also pretty good for a Friday). The markets seem to be energized by the rise in rates, but off extreme levels as well.
In other markets:
- Spot gold is down $-19.45 or -1.12% at $1703.10
- Spot silver is down $0.58 or -2.24% at $25.53
- WTI crude oil futures are down $0.22 or -0.32% at $65.80
- The price of bitcoin is trading down around $1900 or -3.34% at two $5653.48
The US stocks are mixed with the NASDAQ M sharply, and the Dow up. The S&P is near unchanged levels as the stocks react to higher interest rates in premarket trading. The futures are implying:
- S&P index -9.09 points after yesterday's 40.53 point rise
- NASDAQ index -163.9 points after yesterday's 329.84 point rise
- Dow industrial average was 93 points after yesterday's 188.57 point rise
in the European equity markets,, major indices are mixed after a solid run higher in the first four days of the week. The German Dax is lower on the day threatening to break a string of four consecutive record closes:
- German Dax, -0.5%
- Francis CAC, -0.1%
- UK's FTSE 100, unchanged
- Spain's Ibex, +0.25%
- Italy's 50 MIB -0.1%
in the US that market, yields are higher across the board with a steeper curve. The two – 10 year spread is up to 143.84 basis points from 139.81 basis points yesterday.
In the European debt market, yields are higher across the board as well in the benchmark 10 year sector after the declines seen yesterday.