• The Dow Jones fell 80 points (-0.2%) overnight as the market prepares for the Fed Decision tonight. The Nasdaq had the biggest losses, down 97 points (-0.9%), and the S&P 500 fell 16 points (-0.4%). The losses followed some stronger-than-expected economic data, with job openings and construction rising, although the S&P Global manufacturing index fell. Mega-cap tech stocks weighed on the Nasdaq again, with Amazon falling 5.5%. In Europe, Stoxx 50 rose 0.9%, FTSE was up 1.3%, CAC was up 1%, and DAX climbed 0.6%. SPI Futures are up five points this morning.
• US treasuries were mixed, 10-year yields fell by 3bps to 4.05%, but 2-year yields rose by 4bps to 4.55%. Not a lot of action in the FX market overnight, though most currencies were weaker against the US Dollar. The USD Index fell 0.04%. The probability of a 75bps rise at tonight’s meeting is now 85.5%.
• The iron ore price has fallen over 16% in the last month on Chinese concerns. But news headlines out this morning suggest that we could see some relief from China soon, as speculation of an exit from COVID zero has begun to circulate.  
• In commodities, Brent Crude and WTI oil prices rose 2.0% each. Gold was barely changed. There were some big moves in base metals, with nickel up over 6%, while zinc dropped 2.1%. The iron ore price rose overnight, against the recent downtrend.

Tune in to Henry Jennings’ Pre-Market Podcast to get in the know for the day ahead.

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