Adding to yesterday’s US index losses of 0.4% to 1.9%, US index futures are down 0.1% to 0.2% this morning. European bourses are in red across the board with the CAC down 1.0%, the FTSE down 0.6% and the Dax down 0.3%. Asia Pacific trading saw the Hang Seng lose 0.9%.
The 10-year US treasury note yield continues its steady march higher, clearing 4.70% this morning, while the UK 10-year Gilt yield approaches 4.80% and the German 10-year Bund yield moved back above 2.50%. Rising interest rates appear not only to be putting a headwind in front of stocks and bonds, but are also impacting currency trading. The US Dollar is rallying today, gaining 1.1% against Bitcoin, 1.0% against the Pound, 0.4% against the Euro and 0.2% against the Loonie. Precious metals are doing surprisingly well, with Gold and Silver both up 0.3% against the greenback.
US ADP Payrolls were disappointing (122K vs street 140K), while weekly initial jobless claims (201K v street 218K) were better than expected. Yesterday’s US ISM Service PMI report was better than expected so overall it’s a mixed week for US data so far.
Later today weekly oil and gas inventories are due plus FOMC meeting minutes at 2:00 pm EDT. Speaking of commodities, Natural Gas is up 4.2% today and Crude Oil is up 0.6%, but Copper is down 0.4%.
US markets are closed tomorrow for President Carter’s State Funeral. Friday brings the start of earnings season with results from Delta Air Lines and Walgreens Boots, but also more employment data including US Nonfarm Payrolls (street 154K) and Canada employment (street 25K).