Headlines:
- Heads up: US bond market closed for Veterans Day as stocks face a hot CPI hangover
- US futures rally as AI dip buyers return but the bond market has unfinished business
- Nasdaq Today says: “Fold that short.”
- USD/JPY knocks on the door of 159.00 again, dollar bulls risk poking the intervention bear
- Gold dips after Fed’s Waller drops the 50 bps hike bomb and US CPI comes above expectations
- Gold traders see plenty of drama after US CPI but still no clear winner for now
- Crude oil rebounds as expectations for an imminent deal fade amid the lack of US-Iran progress
- Germany October inflation slows, but winter energy risks keep ECB rate hike bets alive
Markets:
- USD leads, CHF lags on the day
- Gold up 0.3% to $4,044
- WTI crude up 1.5% to $87.33
- European equities higher; S&P 500 futures +0.9%
- Bitcoin up 0.3% to $74,007
There wasn’t too much post-CPI hustle and bustle as the broader market mood was much calmer today, following the more anxious and jittery showing yesterday.
Equities are keeping the calm as Wall Street looks poised for a strong bounce at the open later. Tech shares are seen making waves in pre-market, with Nasdaq futures bordering on 2% gains led by a better outlook from CoreWeave earnings yesterday as well as Nvidia finding a steadier footing ahead of the opening bell today.
In Europe, regional stocks are also continuing the more positive mood with the DAX closing in on fresh record highs and continuing the solid run since the end of last week.
That being said, trading conditions might be a bit more tricky and difficult to interpret considering that the US bond market is out of action today. The absence of Treasury yields in guiding markets is something to consider, with that having been a key gauge for broader market sentiment especially after the hotter-than-expected US inflation numbers yesterday.
In that lieu, we are getting some mixed signals with the dollar continuing to pull higher today. USD/JPY in particular is trading up to its highest in over two months, jumping above 159.00 and opening up talk of Japan intervention again. Meanwhile, EUR/USD is slipping further to 1.1130 levels after another rejection above 1.1200 earlier in the week.
In the commodities space, gold is also holding a slight bounce on the day to $4,044 but isn’t exactly finding much conviction after the pushing and pulling this week. A lot will still ride on the dollar and yields, with Fed expectations having shifted more hawkishly after the inflation data and Fed commentary in recent days.
As for oil prices, we are seeing a minor bounce as well with WTI crude nudging up to $87.33 after quite the beatdown since last week amid hopes for de-escalation in the US-Iran conflict. There hasn’t been any concrete progress just yet but markets are still holding on to some relative optimism that things are not going to escalate all too much more in the Middle East – for now at least.
This article was written by Justin Low at investinglive.com.