Headlines:
Markets:
- USD leads, JPY lags on the day
- European equities mostly lower; S&P 500 futures down 0.1%
- US 10-year yields up 2.9 bps to 4.039%
- Gold up 0.4% to $3,648.62
- WTI crude up 1.1% to $63.09
- Bitcoin up 0.6% to $115,096
There wasn’t too much to work with during the session even though there were decent amount of headlines crossing the wires.
The ECB was out in droves to clarify their thoughts and views after the policy decision yesterday. It was mostly a rehash of what we’ve heard from Lagarde though Villeroy stood out in saying that markets “overreacted” and that they could still look to cut rates again.
In any case, the comments overall don’t stand out all too much with the ECB set to stay on the sidelines until December at least. It’s all on the data over the next two months to see if that might prompt some action from the central bank.
Broader markets remain relatively muted though in European trading, with the dollar keeping steadier after the mix of US data from the CPI report and weekly initial jobless claims data yesterday. The lean was no doubt more dovish but further downside for the dollar seems to be limited for now, with traders nearly pricing in 75 bps of rate cuts by year-end currently.
EUR/USD is lightly changed at 1.1727 amid large option expiries in play, while USD/JPY did push a little higher and is up 0.3% to 147.70 but nothing to really shout about. Besides that, other major currencies are not doing anything at all with a lack of conviction before the final session of the week.
The more muted mood also comes as equities are looking more tepid today following the gains in the day before. US futures are lightly changed, with S&P 500 futures down 0.1%. Meanwhile, European indices held higher at the open but the momentum quickly fizzled and most regional indices are now down on the day. For the DAX, it’s a bit of a setback as the slight advance this week doesn’t look to amount to much as compared to its peers in the region.
In other markets, gold continues to stay underpinned though not really extending gains in the latter stages this week. Price is up 0.4% today to $3,648 as it continues to hover at the highs, with buyers hoping to secure a fourth straight week of gains. The latest one this week looks set to be just under 2% currently. Up, up, and away.