The JPY is the strongest and the CHF is the weakest as NA traders enter for the week

As the North American session begins, the JPY is the strongest and the CHF is the weakest. The USD is mostly stronger after closing on Friday as the weakest of the majors on Friday when the jobs gains were weaker than expected but the unemployment rate moved lower and wage growth was also stronger. The market is now pointing to up to 4 tightenings in 2022, and chatter over the weekend, that the Fed may have to impose Quantitative Tightening (QT - see post here).

US 10 year yields move up 25 basis points last week. They are up modestly today.

US stocks last week saw the major indices all move lower led by the Nasdaq NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term which fell -4.53%. The US stocks are trading lower in pre-market trading today.

• Dow industrial average fell -0.31%
• S&P index fell -1.85%
• NASDAQ index tumbled by -4.53%
• Russell 2000 fell -3.11%

This week, on Tuesday Fed Chair Powell will testify on his renomination for Fed chair in front of the setback the committee. US CPI data will be released on Wednesday, PPI will be released on Thursday and retail sales were released on Friday.

A snapshot of the market currently shows:

• Spot gold is down $1.84 -0.11% at $1793.50
• Spot silver is down six cents -0.24% at $22.27
• WTI crude oil futures are trading down around $0.78 at $78.19
• The price of bitcoin is trading below $41,000 at $40,943

In the premarket for US stocks, the futures are implying a lower levels in the major indices Indices Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track Read this Term. The NASDAQ and S&P are on four day losing streaks. The Dow industrial average is down three straight days after closing at record levels for the first two days of the trading year. The earnings season gets underway with J.P. Morgan and Citibank reporting on Friday (can you believe it is that time again?):

• Dow industrial average is down -120 points after Friday's -4.81 point decline
• S&P is down 31 points after Friday's -19 point decline
• NASDAQ index is down -192 points after Friday's -144.96 point decline

In the European equity markets, the major indices are also trading lower:

• German DAX, -0.64%
• France's CAC, -0.7%
• UK's FTSE 100 -0.25%
• Italy's FTSE MIB -0.4%
• Spain's Ibex, -0.35%

In the US debt market, yields are modestly higher after last week's sharp move to the upside:

In the European debt market, yields are trading lower after German tenure initially moved closer to the parity level at -0.025% (currently at -0.055%).