The AUD is the strongest and the JPY is the weakest as the NA session begins. In what is a "risk on" profile to start the week, the other commodity currencies - the CAD and NZD - are also higher, while the USD joins the JPY as a weaker currency as traders react to the 'goldilocks' jobs report, China eases restrictions on internet giant Ant Group and that country also prepares for a rebound in 2023 as a result of loosening Covid restrictions. Oil prices are also higher on the expected surge in demand post Covid in China with prices up 3.6% in early trading.
This week, the US CPI will be a key report for markets if the transition in inflation is to continue its progression. That report will be released on Thursday at 8:30 AM with the expectations for the release to come in near 0.0%. Such a number would bring the 6 month annual gain to 2%, the Fed target (give or take). For a look at that transition, and others from a technical perspective, see my weekend video "Transition" by clicking on the link below.
A look around the markets to start the trading week is showing:
- spot gold is trading up $9.70 or 0.5% at $1874.95
- spot silver is trading up $0.14 or 0.6% at $33.94
- WTI crude oil is trading up $2.25 at $76.03
- Bitcoin is trading higher at $17,250. On Friday the digital currency closed at $16,950.
In the premarket for US stocks, the futures are implied a higher opening after Friday's gains. The gains last week with the best since November:
- Dow Industrial Average is up 105 points after Friday's 700.53 point rise
- S&P index is trading up 15 points after Friday's 86.98 point rise
- NASDAQ index is up 50 points after Friday's 264.05 point rise
in the European equity markets, the major indices are also trading mixed/higher:
- German DAX +0.70%
- Francis CAC +0.31%
- UK's FTSE 100 +0.05%
- Spain's Ibex -0.07%
- Italy's FTSE MIB +0.60%
Asian-Pacific markets, Japan was on holiday but major indices also moved higher:
- Hang Seng composite index +1.89%
- New Zealand 50 +0.18%
- Australia's S&P/ASX +0.59%
- Shanghai composite +0.58%
The US debt market, yields are mostly higher.
In the European equity markets, the benchmark 10 year yields are also trending to the upside today:
