Equities Globally are set for a fresh record after tech-led rallies in US indices. The S&P, the Dow Jones and the Nasdaq were all up at the close of play yesterday, as are the S&P and Dow Jones futures in the Asian session. However, the level of general optimism and positive sentiment is currently being tempered as investors wait for today's US CPI figures - a big downside surprise will be needed to rid the markets of fears about higher rates for longer in the US. The expected figure is 3.4% with core at 3.6% YoY (3.5% and 3.8 previously, respectively). Interestingly, 10-year treasury yields fell slightly yesterday as investors, an optimistic move, mirroring the equities picture.
USDJPY is currently trading above 156 - still creeping up towards the 160 mark where there seemed to be intervention (unconfirmed). Japan's 10-year government bond yield is close to its highest level in a decade after the BoJ announced they were reducing their buying of Japanese bonds - the 20-year bond hit its highest level in a decade yesterday.
In commodities, oil climbed yesterday (WTI Crude now $78.65/barrel) after a report showed shrinking US stockpiles. Gold is steady, spot at $2360/oz.
Bitcoin rose 0.5% to $61882.38.
On the data front today, as mentioned, by far the biggest news will be the US CPI print at 13:30 London time.
