Headlines:
Markets:
- AUD leads, NZD lags on the day
- European equities lower; S&P 500 futures down 0.3%
- US 10-year yields up 5.5 bps to 4.765%
- Gold up 0.3% to $1,924.37
- WTI crude up 0.1% to $86.79
- Bitcoin up 0.2% to $28,470
With US president Biden only arriving in Israel on Wednesday, there weren’t much further developments in the Israel-Hamas conflict for markets to really work with. As such, there is still uncertainty but bonds got back to their usual pattern and were sold. 10-year Treasury yields climbed during the session and that is giving broader markets some food for thought.
Equities were steadier earlier on but are now pinned down while the dollar is trading mixed across the board with some headlines keeping things interesting in European morning trade.
A softer set of partial UK jobs data is pinning the pound lower while there was a whipsaw in the yen amid a rehash of old news detailing that the BOJ is set to revise higher its inflation outlook later this month.
GBP/USD dropped from 1.2190 to 1.2150 before recovering most of that drop but is still down 0.2% to 1.2185 currently. Meanwhile, USD/JPY saw a plunge from 149.60 to 148.72 before recovering back some ground to 149.35 at the moment.
Elsewhere, the euro and aussie are holding slight gains while the kiwi is reversing course after the gap higher from the NZ elections yesterday.
In the commodities space, gold is up slightly alongside oil as safety bets are not yet completely abandoned on the week. It’s now over to US retail sales to provide the next point of action for markets, in particular Treasuries (in turn, the spillover to stocks and FX).