Overview:Equities, bonds, and the dollar begin the new week on a firm note. Japanese, Chinese, Australian, and New Zealand equities advanced in the Asia Pacific region. Europe's Stoxx 600 is snapping a three-day decline, and US futures are 0.25%-0.35% higher. The US 10-year yield is a little softer at 1.48%. European benchmark yields are mostly 1-2 bp lower, and near 0.71%, the UK Gilt's yield is at a three-month low. The dollar is rising against all the major currencies and is 0.3%-0.45% higher against most. The Canadian dollar and sterling are the most resilient. Among emerging market currencies, the Chinese yuan continues to defy official signals to eke out a small gain. The Turkish lira is off more than 2%, after having dropped 4% initially. Intervention at the end of last week failed to have a lasting impact, and the central bank is expected to cut rates again later this week. The JP Morgan Emerging Market Currency Index is giving back last week's 0.2% gain plus more today. It was the first weekly gain in five weeks. Gold is quiet in the upper end of the pre-weekend range, holding above $1780. January WTI is firm but capped near the 20-day moving average (~$72.80). US natgas is firm after falling 5% last week. Dutch gas is up 8% to new two-month highs. It has a six-week rally in tow, during which time it has gained a little more than 60%. Industrial metals are higher too. Iron ore snapped a three-day air pocket and gained it all back and more with its 6.5% rally today. Copper has steadied after falling almost 2.5% in the last two sessions.
