We are green across all equity markets this morning as a modicum of positive sentiment returns to markets although volatility remains as can be seen by the Dow Graph. Wall Street rebounded sharply yesterday the Dow, S&P and Nasdaq closing 4.53%, 4.22% and 3.85% respectively. The Hang Seng and Shanghai are both trading over 1.00% this morning. The 10y US Treasury yield has climbed back above 1.00% even though markets are expecting the Fed to front-load their rate cuts with a further 25 bps later this month and a possible 25 bps in April. Last night the Canadian central bank cut by 50 bps. The BOE, however, said they would take a wait and see attitude before making any cuts.
The Dollar firmed overnight against the Euro and Yen on good private payrolls data but slipped against the Pound after the comments on rates from the BOE. Markets will be looking out for tomorrows Non-farm payrolls number and unemployment data. The Rand is a touch stronger this morning at 15.2900 and we expect a similar 15.2000/15.3500 range for today barring any shock market moves.
Gold is holding steady at $1 640.25 while Palladium is up from yesterday’s levels at $2 540.45.