- Gold down $35 to $1861
- WTI crude oil up $10.5 to $105.73
- US 10-year yields up 10 bps to 2.98%
- S&P 500 up 23 factors to 4155
- USD leads, CHF and GBP lag
It was a energetic day of buying and selling however ended up posing as many questions as solutions. A flash crash in European equities — rumored to be a Citi buying and selling error — led to a tense ambiance early however inventory futures have been solely modestly decrease earlier than the open. They opened strongly nevertheless earlier than going forwards and backwards in massive swings. The lows got here firstly of the ultimate hour of US buying and selling however a giant rally adopted into the shut.
The FX market did not precisely comply with the tick-for-tick strikes, preferring as an alternative to purchase the greenback on the climb in yields. US 10s hit 3% for the primary time since 2018 earlier than settling just under. The strikes did not kick off till New York buying and selling and weren’t tracked by Europe, widening spreads additional.
Even with that, USD/JPY did not make a lot of a transfer.
Cable was an even bigger mover because it sank once more, erasing most of Friday’s deceased feline-style bounce. Cable has tracked equities these days however did not get any life out of the late bounce.
One other outstanding ongoing theme in markets is the resilience in oil. It sank in Europe and early US buying and selling on a report that the EU hasn’t been capable of finding a solution to come to a consensus on banning Russian oil by yr finish. But regardless of that and the early poor danger sentiment, it got here all the best way again and completed increased. That is been a theme for the previous two weeks and each time it seems to be able to crack it comes again stronger. CAD did wrestle on the weak point and made a little bit of a comeback on the bounce however not sufficient to complete increased on the day.
The euro touched under 1.05 as speak of a European recession begins to develop louder. The ECB definitely has its work reduce out for it.