Headlines:
- US equities look to bounce back after yesterday's stumble
- US 30-year yields move up to hit 5% threshold again
- UK Finance Minister Reeves: Britain's economy is not broken
- Japan trade negotiator Akazawa reportedly making arrangement for US visit tomorrow
- BOJ governor Ueda: There is no change to our stance on rate hikes
- Eurozone July PPI +0.4% vs +0.2% m/m expected
- Eurozone August final services PMI 50.5 vs 50.7 prelim
- UK August final services PMI 54.2 vs 53.6 prelim
- US MBA mortgage applications w.e. 29 August -1.2% vs -0.5% prior
- OPEC+ to consider another output hike at Sunday meeting
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.5%
- US 10-year yields down 0.4 bps to 4.273%
- Gold up 0.4% to $3,547.16
- WTI crude down 2.0% to $64.29
- Bitcoin up 0.1% to $111,560
After the global bond rout triggered a bit of a scare in broader markets yesterday, we're seeing a much calmer mood in trading today - at least for now.
The yields blowup continued earlier in the day with 30-year yields in Japan shooting up to an unprecedented 3.29% with 30-year yields in the UK also shot up to 5.75% - its highest since 1998. US 30-year yields also briefly clipped the key 5% threshold but since then, the moves have backtracked a little.
UK 30-year yields are now at 5.66% and 30-year yields in the US are at 4.96%, helping to alleviate some of the pressure on market sentiment.
That's helping to feed into a better showing in equities, with US futures pointing to a bounce back at the open later. That as least for tech shares, with S&P 500 futures and Nasdaq futures up 0.5% and 0.7% respectively.
In FX, the calmer mood is not really leading to much notable movements. The dollar is keeping steadier across the board with light changes for the most part. EUR/USD is up just 0.1% to 1.1648, trapped between large option expiries on either side of 1.1600 and 1.1680 today. Meanwhile, USD/JPY is up just 0.2% to 148.63 after briefly running above 149.00 with buyers running up against resistance from its 200-day moving average at 148.83 currently.
In other markets, precious metals continue to hold on to gains from the past few days with gold keeping at around $3,547 as it looks to build on a break of the $3,500 mark. Meanwhile, silver is lightly changed but continuing to keep above $40 at around $40.90 at the moment.
Another notable mover was actually oil, with prices falling after a report that OPEC+ might consider another output hike at the weekend. That saw WTI crude drop from around $65.40 to $64.29 currently, keeping just above its own 100-day moving average of $64.25.
