The US traders are back from the Labor Day Holiday
The North American session begins with the US traders returning from the long Labor Day weekend. To start the day, the USD is the strongest while the AUD is the weakest after the RBA said it will taper its purchase government securities at a rate of A$4 billion per week, but decided to extend that purchase period from November 2021 to February 2022. The GBPUSD has seen consistent selling with technical breaks back below the 100 and 200 hour MAs and also back below the 200 day MA. The ZEW economic sentiment in Europe and Germany came in weaker than expectations. The ECB will meet this week. In Asia, China showed a larger trade surplus with higher than expected imports and exports. It was not enough to help the AUD today.
Looking around other markets:
- Spot gold is trading down – Will $11 or -0.60% at $1812.19.
- Spot silver is down $0.34 or -1.32% $24.35
- WTI crude oil futures are trading down $0.85 -1.23% $68.44
- The price of bitcoin is trading at $51,070 after trading as high as $52,956.47. That was the highest level since May 12
In the premarket for US stocks, the major indices are up modestly after the NASDAQ’s record close on Friday. The Dow and S&P were down modestly on Friday. The futures are implying:
- NASDAQ +3.64 points. The index rose 32.34 points on Friday.
- Dow Jones +34.4 points. The index fell 74.73 point on Friday.
- S&P index +3.27 points. The index fell -1.52 points on Friday. In the European markets
in the European equity markets, the major indices are mostly lower:
- German DAX, -0.1%
- France’s CAC, +0.1%
- UK’s FTSE 100, -0.2%
- Spain’s Ibex, -0.1%
- Italy’s FTSE MIB -0.6%
In the US debt market, yields are higher to start the trading week. The 10 year yield has climbed 4.4 basis points to 1.366%. The high yield reached 1.370%.
The European benchmark 10 year yields are all sharply lower after weaker data today.