Stocks are sharply higher. Yields are a little higher.
The GBP is the strongest and the USD is the weakest as NA traders enter for the day as stocks (and yields) move back higher on hope. Hope for a stimulus package passage, hope that the Fed’s stimulus helps the economy, hope that the virus does not get too outta hand, and hope that the deficits being built will one day ease. The flash PMI numbers out of Europe were mixed with Manufacturing better than expected but services worse than expected. The US Markit PMI data will be released at 9:45 AM ET/1345 GMT.
The GBPUSD snapshot has seen the pair move 287 pips and trade up 210 pips on the day. The EURUSD has moved to the 126 pips higher but off the highs. The EURJPY and GBPJPY are running higher and trading near the highs for the day. The USD is lower vs all the major currencies but it is off the lows for the day.
In other markets:
- spot gold is currently trading up $ 50 or 3.22% at $ 1602.50
- WTI crude oil futures are trading up $ 0.63 or 2.65% at $ 23.98
in the premarket for US stocks, the futures are implying a sharply higher opening:
- Dow is up 878 points
- S&P is up 100 point
- Nasdaq is up 291 points
In the European equity markets, they are soaring in a turnaround Tuesday:
- German DAX, +6%
- France’s CAC, +4.3%
- UK’s FTSE 100, +4.3%
- Spain’s Ibex, +4.4%
- Italy’s FTSE MIB, +5.5%
In the US debt market yields are also a little higher:
In the European markets, the benchmark 10 year yields are also moving to the upside at varying degrees: