Morning Market Recap: U.S. Equities Up, U.S. Dollar Rallying Against Majors

Market Updates | Written by CEP News | Aug 08 08 13:47 GMT |
(CEP News) - North American fixed income markets and equities are mixed with yields on U.S. 10-year Treasury notes down 0.9 bps to 3.91% and Canadian 10-year CGBs down 6.2 bps to 3.58%. The Dow Jones industrial average is up 22 points to 11453 and the S&P TSX Composite Index is down 79 points to 13306. The Canadian dollar is down 0.0119 cents to 0.9377 USD and the euro is down 0.0265 to 1.5059 USD.

U.S. two-year yields are up 0.7 bps to 2.43%, with five-year yields up 0.6 bps to 3.15%, and 30-year yields down 1.6 bps to 4.54%. The Eurodollar March 09 contract is down 0.5 ticks to 96.96. The yield curve is flatter, with the 10/2-year spread down 1.4 bps to 146.55 bps.

The Canadian 10-year note is yielding 32.76 bps less than the U.S. 10-year note.

Yields on two-year Canadian government bonds are down 13.7 bps to 2.63%, with five-year yields down 9.9 bps to 3.03% and 30-year yields down 2.6 bps to 4.05%. The December 08 BAX contract is up 14.0 ticks to 97.34.

In Germany, returns on two-year German bonds are down 3.6 bps to 4.05%, with five-year yields down 2.4 bps to 4.07%, 10-year yields down 1.6 bps to 4.25% and 30-year yields up 1.4 bps to 4.67%.

Yields on UK two-year bonds are up 1.6 bps to 4.65%, with five-year yields down 0.5 bps to 4.61%, 10-year yields down 0.9 bps to 4.68% and 30-year yields flat at 4.45%.

In U.S. equities, the S&P 500 is up 2 points to 1268 and the Nasdaq is up 11 points to 2367. European stock markets are lower, with the Eurostoxx down 15 points to 2897, the UK FTSE 100 down 45 points to 5433 and the German DAX down 67 points to 6476.

The Canadian dollar is down 0.83 to 103.10 against the yen. The U.S. dollar is up 0.49 to 109.93 against the yen and the Dollar Index is up 1.068 to 75.615.

The euro is down 0.0079 to 1.6057 against the Canadian dollar, down 0.0043 to 0.7840 against the pound sterling and is lower by 2.16 to 165.54 against the yen.

The pound sterling is down 0.0230 to 1.9210 against the U.S. dollar and up 0.0011 to 2.0483 against the Canadian dollar.

WTI crude oil is down $2.28 to $117.74. The front month gold contract at the Chicago Board of Trade is down $15.60 to $862.30 per ounce.

All data taken at 9:42 a.m. EDT.

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