Markets treading water

Markets are fairly calm this morning with bets on a pause in rate hikes by the Fed offsetting some of the concerns over the stability of the financial system and a possible US recession. US Treasury yields are lower at the short end of the curve with the 2-year quoted at 3.79%. The Dollar closed firmer against the Euro last night but lost ground against the Pound and Yen. The Bank of England and the Swiss National Bank raised rates by 25bps and 50bps respectively yesterday, in line with market expectations. Risk sentiment remains positive with EM currencies all holding on to recent gains. The Rand is trading around the 18.10 level this morning and we need a break below 18.00 to see further strength in the short term.

Commodity update

Gold's safe-haven status continues to push the metal toward the $2,000 level. Platinum and Palladium are trading relatively flat, but Copper and Silver are higher. Brent crude is a touch weaker at $75.90 as supply outstrips demand.

#Markets #Recession #Treasury