US Stocks start the day in red & Gold at year’s low

Treasuries continue their selloff and Wall Street has opened in the red, largely tracking Europe, though underperforming, as the markets continue to look to next week’s FOMC and an all-but-done 75 bp rate boost. Yields gyrated on the avalanche of data, but are settling down just off their highs as there was nothing to cause the Fed to moderate its actions.

U.S. retail sales rose 0.3% in August, fell -0.3% excluding autos
U.S. Empire State index rose to -1.5 in September from -31.3
U.S. Philly Fed index dropped to -9.9 in September from 6.2 in August
U.S. industrial production dropped -0.2% in August, capacity at 80.0%
U.S. import prices at 7.8% y/y in August, export prices 10.8% y/y

The WTI is leading the way in a curve flattener with the 2s-10s further inverted at -41 bps. The 2-year rate is up 6.5 bps to 3.850%. The 10-year is 4.5 bps higher at 3.449%. The bond is up 4.7 bps at 3.484%. Wall Street is modestly lower with the US100 -0.5% in the red, followed by losses of -0.4% on the US500 and -0.22% on the Dow. The USDIndex index declined to 109.42 on the batch of economic reports, but has bounced back to 109.725, though is still off its overnight print of 109.92, just shy of the 110.21 20-year high from September 6.

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Stuart Cowell

Head Market Analyst

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