As the North American session begins, the USD is the strongest and JPY the is the weakest.
Energy remains a big worry and problem in Europe. Drought and the Ukraine war continue to push energy costs higher there. The Rhine River moving to critical threshold levels for ships is preventing barges of coal and other fuels to make it to power plants.
The German and EU ZEW datat today came out weaker than expectations (reached lowest since October 2008)
Meanwhile, Natural gas futures prices continue to advance with the price now topping $9.00 again after being as low as $7.58 on August 8th (+18.7%). Crude oil futures are back above $90 after trading to a new low going back to the beginning of February.
Walmart and Home Depot announced earnings this morning with both beating expectations. Home Depot shares are nevertheless trading lower in premarket trading ($312.76 vs $314.61 close). For Walmart, their shars are trading higher at $137.98 vs the closing level of $132.40.
Apple reported layoffs in the recruiting area as the company scales back company hiring (and that starts with the HR department I guess). Lower demand for iPhone units in China due to zero Covid policy and slower economic growth are prompting the stopping of the hiring process. Nevertheless Apple shares trading to the highest level since April yesterday (shares are down marginally to $173 vs 173.16 close).
The major US stock indices are trading marginally lower/higher in pre-market trading.
Housing starts and Building permits will be released today along with Capacity utilization and industrial production. Housing is slumping with talk of a housing recession beginning. The NAHB housing market index fell for the 8th consecutive month yesterday moving to 49 level for the first times since the start of the pandemic and below the 50 level that signals growth vs contraction.
A snapshot of other markets shows:
- spot gold is trading down -$1.76 or -0.10% at 1777.68
- spot silver is trading down $0.14 -0.69% at $20.12
- WTI crude oil futures are trading up $1.10 at $90.57
- the price bitcoin is trading at $24,069 after trading as low as $22,813. The high price reached $24,250
In the premarket for US stocks, the major indices are trading above and below unchanged after yesterdays gains
- Dow industrial average up 1.56 points after yesterdays 151.39 point rise
- S&P is -1.89 points after yesterdays 17.01 point gain
- NASDAQ index is -5.8 points after yesterdays 80.87 point rise
In the European equity markets, major European indices are defying the growth worries
- German DAX, +0.49%
- France's CAC, +0.34%
- UK's FTSE 100 +0.67%
- Spain's Ibex +0.91%
- Italy's FTSE MIB +0.1%
In the US debt market,
- 2 year yield 3.205%, +1.9 basis points
- 5 year 2.922%, +1.9 basis points
- 10 year 2.808%, +1.8 basis points
- 30 year 3.104%, unchanged
In the European debt market, the benchmark 10 year yields are moving higher:
