A start of a new month but it is a Friday
The GBP is the strongest and the USD is the weakest as the NA session begins. It is a new month – good riddance September/hello October – but it is a Friday which can have some volatility. US stock futures are pointing marginally higher after trading in negative territory overnight (that is a good sign). The Nasdaq is still looking to post its first gain in 6 trading days after clumping -5.4% last month. US yields are lower with the 10 year down -4.0 basis points. The US government averted a government shutdown, but is still stuck in the mud with regard to the $1.2T infrastructure bill and the $3.5T social safety net and energy transition bill which is being held up by the left wing House Dems who want both to be advanced at the same time.
In the other markets:
- Spot gold is down five dollars or -0.29% at $1751.32.
- Spot silver is up $0.10 or 0.47% at $22.27
- WTI crude oil futures are down $0.62 or -0.83% $74.41
- Bitcoin is surging and higher by $3738 at $47,573
In the premarket for US stocks, the major indices are now higher:
- Dow industrial average +138 points after yesterday’s -546 point decline
- S&P index 13.2 points after yesterday’s -51.92 point decline
- NASDAQ index up 35 points after yesterday’s -63.86 point decline
Yesterday and last quarter:
- The S&P indices had its worst month since March 2020
- NASDAQ index had its worst month since March 2020
- Dow had its worst month since October 2020
- The NASDAQ closed negative for the third quarter. The Dow also close lower in the third quarter. It’s the first quarterly loss since March 2020
- Every sector of the S&P index fell lower on the day
- The S&P index had its six straight positive quarter
in the European equity markets, the major indices are trading mixed
- German DAX -0.13%
- Francis CAC unchanged
- UK’s FTSE 100 -0.6%
- Spain’s Ibex unchanged
- Italy’s FTSE MIB unchanged
in the US debt market, the 10 year yield is back down below the 1.5% level at 1.487%. The yield curve is also flatter with the two – 10 year spread down to 120.6 basis points versus 123 point basis points at the close yesterday:
In the European debt market, the benchmark 10 year yields are also trading lower. France’s 10 year yield is down to 0.113%, still above the 0.0% level but whittling away toward that level.
