The GBP is the strongest and the JPY is the weakest as the NA session begins

The strongest to the weakest of the major currencies

The GBP is the strongest and the JPY is the weakest as the NA session begins. The new Chancellor of the Exchequer Jeremy Hunt scraped the Kwarteng plan and as a result, investors have poured back into the UK debt. The 10 year yield is down around 35 basis points. Other yields are lower as well to start the new trading week.

China delayed the release of their most recent GDP report which is expected to rise by 3.4% vs. 0.4% in the prior quarter. No explanation was given.

The comfort is helping to calm the stock markets as the major US and European indices are trading higher after a Friday plunge which saw the Nasdaq move down over 3% on the day (and down a similar amount for the week). The dollar is lower which is helping the tone as well.

Over the weekend KC Pres. George said that the Fed has to be careful about raising rates too fast. Fed’s Bullard said that the Fed should consider a hike of 75 basis points at the November and December meetings, but did say that it does not matter much if the Fed sped up the hikes vs adding an extra 25 basis point hike in the new year. The playbook of ending hikes at 4.75% remains the same – or so it seems. The market has been tilting more to the 5.0% level.

IN other markets:

  • Spot gold is trading up $13.89 or 0.87% at $1658.17.
  • Spot silver is trading up $0.36 or 2.0% at $18.59
  • WTI crude oil for November is trading at $84.68 or -1.16%
  • Bitcoin is trading at $19,446. The digital currency has been in a relatively modest trading range with a range of $18,183 and a high of $19,947 since October 7

In the premarket for US stocks, the major indices are trading sharply higher after Friday’s even sharper declines:

  • Dow industrial average up 300 points after Friday’s -403.89 point decline
  • S&P index +45 points after Friday’s -86.81 point decline
  • NASDAQ index up 150 points after Friday’s -327.76 point decline

in the European equity markets, the major indices are also rebounding higher

  • German DAX, +1.14%
  • France’s CAC +0.86%
  • UK’s FTSE 100 +0.7%
  • Spain’s Ibex +1.6%
  • Italy’s FTSE MIB +1.0%

US yields are lower with the 10 year back below the 4.0% level. Last week, the high yield reached 4.08% before rotating back to the downside (to around 3.84%) and closing mid range for the week.

US yields are lower

European benchmark 10 year yields are lower as well led by the UK yields which are down around 34 basis points at just below the 4.0% level. The low reached 3.94%.

European benchmark 10 year yields are lower led by UK

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