US Session (10/18/2021)

US stocks extended a rebound today as a whipsaw in energy prices relieved some pressure on the market.

The S&P 500 added 0.3% and the NASDAQ 100 gained 1% in a continuation of last week’s gains when solid earnings and reports were strong enough to balance out concerns about energy shortages and supply-chain issues.

OPEC+ failed to meet output targets as Russia opted against sending more natural gas to Europe, shoving commodity prices higher. However, oil’s drop from a session high eased some fears of inflation and policy tightening.

The S&P 500 has now pared back losses from its all-time high to 1.1%.

The yield on the 10-year Treasury note climbed to 1.59% while UK yields surged after the BoE warned on the need to respond to price pressures, the dollar was little changed.

Fed members this week are expected to try to ease market jitters about future tightening. additionally, another week of corporate earnings will offer traders more insight into the health of major corporations.

Stocks in Europe dropped, while those in Asia were mixed after data showed China's economy slowed in the 3Q.

Bitcoin rose to $61320 ahead of the launch of the first futures exchange-traded fund. Gold dropped 0.2%

Asia Session (10/18/2021)

Most Asian stocks gained on Tuesday, as technology companies surged and the prospect of strong corporate results helped alleviate worries about rising inflation.

A gauge of the dollar fell.

Shares rose in Japan Hong Kong and China.

Futures in the US were barely changed after the S&P 500 and Nasdaq 100 rose overnight, boosted by confidence about corporate earnings.

Treasury yields fell and a flattening in the yield curve halted

Government bonds in Australia rose after the central bank said that it is committed to maintaining extremely supportive monetary conditions in order to achieve a return to full employment.

The emphasis in China is on the debt-laden China Evergrande Group's real-estate arm and the coupon payment due on a local bond.

Europe Session (10/18/2021)

On Monday, global bond rates climbed and most equities dropped as rising oil costs fueled inflation fears and bolstered expectations on policy tightening.

Luxury businesses fell following the release of a Chinese presidential address pushing tax legislation, driving losses in Europe's Stoxx 600 index. Futures in the United States dropped as the S&P 500 had its best week since July. In pre-market trade, Apple dropped, while Tesla rose. As China's economy weakened in the third quarter, Asian stocks were divided.

After Bank of England governor Andrew Bailey cautioned about the need to react to pricing pressures, the global bond selloff picked up speed, with UK rates rising. In the United States, Australia, and New Zealand, where inflation surged at its highest rate in ten years, bets for rate hikes have increased. Treasury yields on ten-year notes increased to 1.6%.

Tuesday FX Option Expiries

AUD/USD: 0.7020 (AUD2.73B), 0.7350 (AUD661.2M), 0.6900 (AUD439.1M)
EUR/USD: 1.2622 (EU560.1M), 1.1600 (EU558.6M), 1.1550 (EU514.3M)
USD/CAD: 1.2840 ($780M), 1.2550 ($400.8M), 1.2755 ($360M)
USD/JPY: 107.10 ($500M), 113.50 ($370M), 107.50 ($309.9M)
NZD/USD: 0.6965 (NZD376.2M)
GBP/USD: 1.3525 (GBP558.2M), 1.3695 (GBP422M), 1.3755 (GBP325.7M)
USD/KRW: 1185.30 ($1B)
USD/MXN: 20.25 ($300M)