January 19, 2022

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The GBP is the strongest and the USD is the weakest as the NA session begins

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A start of a new month but it is a Friday

The GBP is the strongest and the USD is the weakest as the NA session begins. It is a new month – good riddance September/hello October – but it is a Friday which can have some volatility. US stock futures are pointing marginally higher after trading in negative territory overnight (that is a good sign).  The Nasdaq is still looking to post its first gain in 6 trading days after clumping -5.4% last month.  US yields are lower with the 10 year down -4.0 basis points.  The US government averted a government shutdown, but is still stuck in the mud with regard to the $1.2T infrastructure bill and the $3.5T social safety net and energy transition bill which is being held up by the left wing House Dems who want both to be advanced at the same time.  

A start of a new month but it is a Friday

In the other markets:

  • Spot gold is down five dollars or -0.29% at $1751.32. 
  • Spot silver is up $0.10 or 0.47% at $22.27
  • WTI crude oil futures are down $0.62 or -0.83% $74.41
  • Bitcoin is surging and higher by $3738 at $47,573

In the premarket for US stocks, the major indices are now higher:

  • Dow industrial average +138 points after yesterday’s -546 point decline
  • S&P index 13.2 points after yesterday’s -51.92 point decline
  • NASDAQ index up 35 points after yesterday’s -63.86 point decline

Yesterday and last quarter:

  • The S&P indices had its worst month since March 2020
  • NASDAQ index had its worst month since March 2020
  • Dow had its worst month since October 2020
  • The NASDAQ closed negative for the third quarter. The Dow also close lower in the third quarter. It’s the first quarterly loss since March 2020
  • Every sector of the S&P index fell lower on the day
  • The S&P index had its six straight positive quarter

in the European equity markets, the major indices are trading mixed

  • German DAX -0.13%
  • Francis CAC unchanged
  • UK’s FTSE 100 -0.6% 
  • Spain’s Ibex unchanged
  • Italy’s FTSE MIB unchanged

in the US debt market, the 10 year yield is back down below the 1.5% level at 1.487%. The yield curve is also flatter with the two – 10 year spread down to 120.6 basis points versus 123 point basis points at the close yesterday:

US yields are lower

In the European debt market, the benchmark 10 year yields are also trading lower. France’s 10 year yield is down to 0.113%, still above the 0.0% level but whittling away toward that level.

European yields are lower

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