Markets:
JPY leads, USD lagsUS 10-year yields down 6 bps to 4.18percentS&P 500 up 0.6percentGold up $13 to 2653WTI crude oil down $0.57 to $68.00
Markets had been surprisingly energetic for a de facto US vacation. Bids had been robust in danger property, which acquired assist from a report saying US restrictions on chip exports will not be as strict. On the identical time, softer eurozone inflation numbers may need fuelled a broader bid in bonds.
The Canadian GDP report additionally underscored an image of a slowing international financial system with charges which can be needlessly excessive.
On the identical time, it is powerful to sq. slowing progress in Europe and Canada with stronger currencies towards the US greenback. Many are pointing to month finish because the supply of the Treasury bid and USD softness. Others level to the choose of Scott Bessent or contemporary rumors about Chinese language stimulus.
We are going to get solutions concerning the flip of the calendar on Monday and I shall be protecting a detailed eye on USD/JPY, because it seems to be embarking on the identical type of dramatic breakdown that we noticed in the summertime. That ultimately unfold to danger property so some warning is warranted, although US financial information hasn’t proven many cracks but.
Have a terrific weekend.
