A surge in U.S. Treasury yields lifted the dollar yesterday, but it also weighed on the stock market. Today, foreign currencies are showing signs of stabilization, with the dollar mostly staying within the range set yesterday. U.S. index futures are trending slightly lower, while gold is attempting to regain its footing above $2,600 after peaking near $2,790 in late October. December WTI crude is trading quietly within yesterday’s range.

Asia Pacific Markets
News from the Asia-Pacific region remains light today. Japan released its October Producer Price Index (PPI), which showed a 0.2% increase, following a revised 0.3% gain in September. The U.S. 10-year Treasury yield surged by around a dozen basis points yesterday, pushing the dollar to its highest level since late July. The dollar strengthened toward JPY155.00 and approached JPY155.25 today.
Meanwhile, the Australian dollar has dropped nearly 1.75 cents from last Thursday’s high, consolidating just below $0.6540.

European Markets
European markets are experiencing a midweek pause in major news. Recently, German industrial output declined by 2.5%, well above the 1% drop forecast in Bloomberg’s survey. French industrial output fell 0.9% in September, also missing expectations of a 0.6% decline. Italian industrial production saw a slightly smaller-than-expected 0.4% decrease, while Spain’s output rose by 0.5%, exceeding forecasts.
The euro hit a new low for the year yesterday and retested that level today, with modest gains limited around $1.0630.
Sterling followed a different path; after touching $1.2790, it slipped to $1.2720 before stabilizing near $1.2730.

American Markets
Today, attention shifts from the anticipated personnel moves in the next U.S. administration to the release of October’s Consumer Price Index (CPI). According to Bloomberg’s survey, economists expect a 0.2% monthly increase, which would mark the fourth consecutive gain at that level. The year-over-year rate is likely to rise for the first time since March due to a base effect, as October 2023 saw a modest 0.1% increase.