Headlines:Markets:CHF leads, USD lags on the dayEuropean equities lower; S&P 500 futures down 0.7%US 10-year yields up 0.6 bps to 4.329%Gold up 2.
Headlines:
Markets:
- CHF leads, USD lags on the day
- European equities lower; S&P 500 futures down 0.7%
- US 10-year yields up 0.6 bps to 4.329%
- Gold up 2.5% to $3,308.26
- WTI crude up 0.9% to $61.86
- Bitcoin flat at $84,023
As Nvidia gets slapped with a ban to sell its H20 chips to China, that weighed on the risk mood at the start of European trading. The dollar was offered alongside it as we returned back to the market theme from last week.
Tech shares were looking heavy with S&P 500 futures down 1.5% and Nasdaq futures down 2.3%, as gold surged to a fresh record high above $3,300. That comes as the dollar was pummeled lower with EUR/USD rising to near 1.1400 while USD/CHF slumped by roughly 1% to 0.8130. USD/JPY also dribbled lower to come close to touching the 142.00 mark again.
All that before a Bloomberg headline noting “China open to talks if Trump shows respect”. That got risk buyers excited with S&P 500 futures briefly paring losses at one point after. To me, it reads no different to what we saw last week when China said “if US wants to talk, it should show attitude for equality and respect”.
But if anything, it shows how this is a market that is desperate for a good headline to run. And it might get just that as Japan is headed for trade talks in Washington today. That said, keep this in mind when reading into that potential development.
S&P 500 futures are back down by 0.7% but off earlier lows at least, though there is still plenty of obstacles to work through the day.
As for the dollar, it is off earlier lows as well but still under pressure across the board. EUR/USD is still up 0.7% to 1.1357, USD/JPY down 0.4% to 142.70, USD/CHF down 1.0% to 0.8150, and AUD/USD up 0.5% to 0.6372 currently.
Amid the China headlines, gold dipped back from a high of $3,317 to $3,290 before picking back up to around $3,308 currently. The precious metal is up 26% year-to-date and has almost matched the gains for the entirety of 2024. 🤯
Elsewhere, the bond market is at least keeping the calm with long-end Treasuries not seeing much change on the day.
It’s now over to North America trading where we will be getting US retail sales, the Bank of Canada policy decision, Fed chair Powell’s speech, US-Japan trade negotiations, and of course more Trump headlines in the making.
www.forexlive.com