The markets stabilize after yesterday’s declines in stocks, oil, and treasury yields
As the North American session begins, the USD is the strongest and the NZD is the weakest of the majors. The NZDUSD traded to the lowest level since November earlier today, but is off the low. The GBP is lower as well as it struggles with “freedom” as the Delta virus numbers cause anxiety. The US stocks are higher helped by better earnings from IBM after the close yesterday. Netflix earnings will be released after the close. Crude oil has rebounded after yesterday’s sharp declines saw its price test its 100 day moving average (currently at $66.23). The 10 year yield is modestly higher after falling to its lowest level in five months. Japan’s Nikkei closed at a six-month low as rising Covid 19 cases just ahead of the Olympics weigh on growth sentiment. The Japan 10 year bond yield also fell to a six-month low. The games will go on.
In other markets,
- Spot gold is up $5.21 or 0.29% at $1817.43
- Spot silver is near unchanged at $25.17
- WTI crude oil futures up $0.33 or 0.5% at $66.75
- Bitcoin continues to trade weaker. It is currently down around $1000 or -3.3% at $29,740. The low reach $29,312. The hi was up at $31,052.25
In the US stock market markets have rebounded in premarket trading after the Dow’s decline of over 700 points yesterday. The NASDAQ is looking to snap a five day decline. Netflix will report earnings after the close today. Intel report earnings on Thursday.
- Dow – up 230.96 points. Yesterday the Dow industrial average fell -725.81 points
- S&P index fell below its 50 day moving average intraday, but recovered by the close. It is currently trading up 25.26 points. Yesterday the index fell -68.65 points
- NASDAQ index closed lower for the fifth consecutive day yesterday with a decline of -152.25 points. Today the index is trading up 68 points in premarket trading
In the European equity markets, the major indices are also lower:
- German DAX, +0.26%
- Frances CAC, +0.8%
- UK’s FTSE 100, +0.44%
- Spain’s Ibex, +0.4%
- Italy’s FTSE MIB, +0.21%
In the US debt market, the is rebounding after declining double digits yesterday. The 10 year yield is currently up a modest 0.3 basis points at 1.184% after dipping to an overnight low of 1.164% (the lowest level in 5 months). The 30 year yield is up 1.6 basis point. The 2-10 year spread fell below the 100 level yesterday and trades currently at 97.8 basis points up modestly from the closing level of 97.1 basis points at the end of trading yesterday.