The JPY is the strongest and the EUR is the weakest as the North American session begins. The two currency central banks met yesterday with the BOJ keeping rates unchanged and continued to support yield support. The ECB launched rates moving higher finally with a bigger than expected 50 basis point hike. However, ECBs Lagarde did speak of demand moving lower and that the higher rate hike did not necessarily mean the finish line would be higher. The ECB also announced the activation of the new Transmission Protection Instrument aimed at stopping the "serious threat to the transmission of monetary policy across the euro area". IN other words, they have the option to buy Italian bonds if they get hit because of a political crisis.
Pres. Biden has covid but is doing well.
In Europe, the flash EU PMI came in below the 50 level for the first time since November 2020. Germany PMI also fell below 50 for the first time since June 2020. That helped to push the EURUSD lower and back below the 100 hour MA.
In other markets:
- spot gold is trading up $10 or 0.58% at $1727.95.
- Spot silver is up $0.05 or 0.34% at $18.89
- WTI crude oil futures are trading at $95.07 or down -1.25%
- Bitcoin is trading at 22,614 up $517 or 2.24%
In the premarket for US stocks, the major indices are mixed after gains across the board yesterday. The NASDAQ is down for the 1st time in 3 days.
Twitter shares this morning came in worse than expected with the revenue miss at $1.18 billion vs. $1.32 billion estimate. The earnings-per-share were also a miss at $-0.08 vs. expectations of plus $0.14. Snap shares are also down sharply by 30% after the earning miss after the close yesterday. Shares of Meta (-4.57%) and Alphabet (-2.8%) are also lower.
- Dow industrial average is trading up 52.10 point after yesterdays 162.08 point gain
- S&P index is down -6 points after yesterdays 39.05 point gain
- NASDAQ is down -42 points after yesterdays 161.96 point gain
In the European equity markets, the major indices are mostly higher despite the declines in the flash PMI data:
- German DAX, +58 points or 0.44%
- France's CAC +21.63 points or +0.35%
- UK's FTSE 100 up 10.54% or +0.15%
- Spain's Ibex up 19.18 points or +0.24%
- Italy's FTSE MIB is up 112.5 points or 0.53%
In the US debt market yields fell sharply yesterday, with the 10 year moving back below the 3.0% level. Those yields have continued the move to the downside in trading today:
- 2 year 3.003%, -8.6 basis points. The high yield yesterday and the high yield for the week reached 3.276%.
- 5 year 2.964%, -10.0 basis points
- 10 year 2.809%, -6.9 basis points. The high yield yesterday reached 3.08% before tumbling lower
- 30 year 3.011%, -3.5 basis points
In the European debt market, yields also moved sharply lower today with the Italian yields down -16.5 basis points and Spain yields down -20.5 basis points a day after the ECB announced the activation of the TPI. The weaker PMI data also contributed:
