Charts + Observations
Europe and US futures are rebounding off their lows.
Asia under pressure with key regional gauge tracking technical-correction. All regional sectors in red.
Yields again. Regional bond yield backup continues with Treasury curve continuing to steepen.
Tech-linked Kospi and Nikkei were among the worst performers. HSTECH -20% from 2023 highs.
Nikkei down to its lowest since mid-May. Japan 10yr yield rises to 0.8% first time since 2013.
Light day on the economic calendar. RBNZ left OCR unchanged as predicted.
SK industrial prod grew at fastest pace since Jun20 while manufacturing improved to 15m high, adding to signs of economic stabilization.
Europe turning a bit with yields taking a quick breather - after closing lower on Tuesday, near 6m lows.
Lagarde reiterated that her policy rate is likely at ceiling.
Better than exp PMI data out of Germany and France. German service PMI even managed to print above 50.
Cyclicals -80bps 2nd d of losses while Divi and Quality baskets showing gains again.
Pro-defensive move so far w/Utilities, Media & Real Estate leading the charge while Auto, Retails and Travel&Leisure lagging.
DXY -13bp. Copper -40bp while US nat gas +130bp and 90bp in Europe. Bitcoin +60bp to $27.56K while gold trades flat.
Brent -60bpw/Saudi Arabia and Russia are keeping their recent supply cuts in place until the end of the year although Moscow could soon ease its recent diesel export ban.
US futures off their lows trading nearly flat w/ESZ3 -5.25, HIWZ3 -5.00, RTYZ3 -4.00 and NQZ3 -37.00.