The GBP is the strongest and the JPY is the weakest as the NA session begins. The USD is lower mostly with gains vs the CHF and the JPY. The big event of the week will be the Fed meeting with the announcement on Wednesday at 2 PM. The Fed is expected to increase rates by 75 basis points. The earnings week in the US will also be key events with Microsoft, Apple, Amazon, Boeing, Meta, Alphabet, etc all on the docket (see post here).
IN the European session, the German IFO date was weaker than expected as sentiment continues to erode in that country and EU in general as a result of uncertainty from the Ukraine war inclusive of energy costs.
US stocks are higher in pre-market trading after Friday's declines. Nevertheless the US market has been up 2 of the last 3 trading weeks. US yields are higher at the start of the session after sharp declines seen last week. Crude oil is rebounding after falling to near $93 earlier in the session.
A look around the markets shows:
- spot gold is trading near unchanged at $1726.80
- spot silver is up $0.06 or 0.3% $18.62
- WTI crude oil is trading up $1.54 or 1.57% at $96.23
- bitcoin closed Friday near $22,682. The current prices trading at $21,918.40
In the US stock market, the major indices are higher after Friday's declines:
- Dow industrial average is up 153.71 points after Friday's -137.61 point decline
- S&P index is up 18 points after Friday's -37.30 point decline
- NASDAQ index is up 55 points after Friday's -225.5 point decline
In the European equity markets, the major indices are higher despite the weaker data at of Germany today:
- German DAX, +41.1 points or 0.3%
- France's CAC up 31.23 points or 0.5%
- UK's FTSE 100 up 17 points or 0.23%
- Spain's Ibex +43 points or +0.54%
- Italy's FTSE MIB up 139 points or 0.66%
In the US debt market, yields are higher
- 2 year 3.008%, +3.4 basis points
- 5 year 2.889%, +4.3 basis points
- 10 year 2.816%, +6.4 basis points
- 30 year 3.053%, +7.7 basis points
In the European debt market, the benchmark 10 year yields are mostly higher as well. The ECB raise rates by 50 basis points last week which was greater than the 25 basis point expected:
