As the North American session begins, the AUD is the strongest and the NZD is the weakest. The USD is mostly stronger but with only modest changes against all the major currencies with the exception of the AUD. The DXY index moved to the highest level since December 2002 last Thursday before backing off marginally on Friday. The dollar index rose close to 5% last month. And has been up for four consecutive months. Since the January low, the dollar has advanced 9%.
The FOMC meets on Tuesday with their decision announced on Wednesday. The US central banks it is expected to raise rates by 50 basis points.
The US stocks were higher earlier in the premarket session but have now turned into negative territory as the clock ticks toward the start of the new trading day after the disastrous April.
The NASDAQ index closed at the lowest level since November 2020 with a -4.2% decline on Friday alone to end the month. The S&P closed at the lowest level since May 2021 after a -3.6% decline on Friday. The NASDAQ index fell over -13% for the month of April. The S&P fell over -9% last month. The major indices are on a losing streak of five weeks for the Dow industrial average and four weeks with the S&P and NASDAQ index.
Overnight the April PMI's or worse than expected out of China. European PMI data was marginally better than expectations. German retail sales were worse than expected -0.1% versus 0.2% estimate.
A look at other markets as North American traders enter for the day shows:
- Spot gold is trading down $21.59 or -1.14% at $1874.07
- Spot silver is down $0.15 or -0.68% at $22.58
- Crude oil is trading down -$3.75 or -3.58% at $100.94
- Bitcoin is trading up near unchanged at $38,565
In the premarket for US stocks the major indices are trading marginally lower last Friday's sharp declines
- Dow industrial average is down -40.21 points after Friday's -939.18 point tumble
- S&P index down -9.18 points after Friday's -155.57 point decline
- NASDAQ index down -60 points after Friday's -536.89 point decline
The Europe, the major indices are trading lower across the board. The UK is on holiday today
- German DAX, -1.15%
- France's CAC -1.9%
- UK FTSE closed
- Spain's Ibex, -1.3%
- Italy's FTSE MIB, -1.7%
The US debt market, the yields are higher after declines seen recently
- 2 year yield is at 2.707%, down 1.4 basis points
- 5 year yield is at 2.945%, -1.5 basis points
- 10 year yield is at 2.920%, -1.9 basis points
- 30 year yield is at 2.992% -1.0 basis points
