Headlines:
Markets:
- EUR leads, JPY lags on the day
- European equities higher; S&P 500 futures flat
- US 10-year yields down 7.9 bps to 4.702%
- Gold down 0.2% to $1,856.25
- WTI crude down 0.4% to $86.04
- Bitcoin down 0.2% to $27,520
It took less than a day for markets to brush aside the Middle East conflict and we got more of that again in European trading today.
Regional stocks are having to play catch up to the gains in Wall Street yesterday, so they are all up over 1%, although the optimism is slightly tempered with in the last hour as US futures turn flat. That comes as Treasury yields are nudging a little higher now after the opening gap lower, with 10-year yields up to 4.70% from around 4.63% earlier in the day.
It’s a straightforward reversal of the fears amid the kneejerk reaction, although there could be more uncertainties creeping in during the week(s) to come.
As for FX, the dollar was flat early on before we got an extension of the narrow ranges. That saw the greenback ease a little lower as risk trades advanced before all of that switched up in the last hour. As such, the dollar is now mostly flattish and mixed as it keeps little changed against the euro, pound, franc and loonie while higher against the yen.
We’re now back to the regular scheduled programming and that means focusing on the US CPI data to come later this week.