Situation Report
"Good morning, there is a lot to unpack this session, so let me walk you through what matters today.
S&P 500 futures are up 0.69% to 7880, while US 10-Year Yields are retracting 0.79% to sit at 5.269%. Bitcoin has failed to hold the $85,000 level, currently trading at $84,113.02, reflecting a localized correction in crypto assets while traditional equities gain traction.
Markets are fixated on the upcoming FOMC Minutes, which could dictate the trajectory of interest rates. Oil is seeing a bit of a surge to $90.19, potentially impacting inflation expectations. Meanwhile, the Reserve Bank of India is widely expected to begin a rate-hike cycle with a 25 basis point move. Bitcoin is struggling to maintain its momentum, failing to hold the $85,000 level. Traders are also keeping a close eye on the Australian Dollar, which is struggling to regain the 0.7000 handle.
Biggest Movers Right Now? Ethereum and VIX are down. High Yield Bonds, Natural Gas, and Corn are up."
News Risk Assessment
Potential risk shift: The FOMC minutes release is a major catalyst that could cause a violent repricing in bond yields and equities if the messaging diverges from the current dovish-leaning market anticipation.