Your morning bite. US stocks extend rally. Gilts surge on Sunak Prime Ministership.
Stocks:
Wall Street extended its recovery. The S&P500 rose 1.2% and the NASDAQ jumped 1.1% Health care and consumer staples led the charge. SPl Futures are pointing to a 28 point jumpfor the ASX200 this morning.
Rates/bonds:
US PMl data undershot expectations and pointed to a rapidly slowing US economy. PMls in Europe were also disappointing. Despite that, the Us 10 year yield edged higher, rising to 4.25%. Futures continue to point a terminal Fed Funds Rate of 5%. The 10year Gilt yield plunged 31 points after it was revealed Rishi Sunak would be the next UK prime minister.
FX:
The US Dollar Index rose 0.4%.The Pound and Euro was practically flat. But Japan'sefforts to stabilize its currency is becoming a bigger challenge with the Yen falling 0.9% to around 149. Despite the risk-on turn on Wall Street, the AUD/USD dropped back to the low 0.63 handle.
Commodities:
Commodities seemed to be driven by a combination of a stronger Dollar and higher yields. Brent Crude was very slightly lower. Gold dropped 0.5% to about $US1650.
Crypto:
Bitcoin continues to trade in a tight range and is fetching around $US19,000
$S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $DJIA(DJIA)$ $Light Crude Oil - main 2212(CLmain)$ $Australian Dollar - Dec 2022(AUD2212)$
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