The AUD is the strongest and the CHF is the weakest as NA session begins

As the North American session begins the AUD is the strongest and the CHF is the weakest. The USD is mixed to lower with sharp declines vs the AUD and NZD as those currencies rebound as “risk off” flows abate for the day at least. The RBA will likely keep rates unchanged at their meeting in the new trading day tomorrow despite a pick up in inflation.

US stocks are set to open mixed with the Nasdaq now trading above and below unchanged. The Dow is lower. The S&P is lower. AMD, Paypal, Alphabet, GM, Starbucks, Meta (Facebook), Amazon, Ford, Merck, Bristol Meyers Squibb all are scheduled to announce earnings this week.

US yields are marginally higher although the 10 year is still off the 1.900% recent cycle high at 1.79%. The yield curve has been flattening as the market expects the Fed to raise rates but control inflation (slow growth).

This week is US and Canada will report their employment statistics on Friday. In addition to the reserve Bank of Australia meeting and announcing their rate decision on Tuesday, the Bank of England will release their rate decision on Thursday. They are expected to raise rates by 0.25 basis points The ECB will also announce their rate decision on Thursday. OPEC will meet as well.

A snapshot look at the markets are showing:

• Spot gold is trading near unchanged at $1791.34
• Spot silver is up $0.10 or 0.5% at $22.57
• WTI crude oil is trading up $0.55 or 0.65% at $87.30
• Bitcoin is trading at $37039 at the start of the US session

In the premarket for US stocks, the major indices are mixed after Friday’s sharp rebound which saw all major indices close higher for the week (which seems impossible). The Nasdaq did close up by the smallest of margins (I believe it was +0.1%) but it was an up week nevertheless. Today the snapshot is showing:

• Dow industrial average -183 points after Friday’s 564.69 point surge
• S&P index -15 points after Friday’s 105.36 point rise
• NASDAQ index up 7 points after Friday’s 417.79 point rise

In the European equity markets, major indices are mixed:

• German DAX, +0.3%
• France’s CAC -0.18%
• UK’s FTSE 100 Unchanged
• Spain’s Ibex -0.4%
• Italy’s FTSE MIB+0.5%

In the US debt market, yields are higher with the largest gain in the 2 year. The 10 year is up 1.4 basis points in the snapshot this morning:

In the European market, the benchmark 10 year yields are also higher: