Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Bank and oil stocks are trading higher.
- Asian markets are mostly higher.
- Precious metals are getting slammed.
Morning! US Futures starting mixed, with Nasdaq up 30bp as AMD and NVDA jump early. Dow and Russell Minis off small, as Bank Earnings and Yellen testimony this week in focus. Pretty much all green in Europe, where DAX is up 40bp. Banks and Oil stocks in rally mode, while the food and beverage sector lead gains. FTSE only up small, as Miners under pressure on Chinese data. Volumes are abysmal, with markets trading 30% light to normal trends. Pile of big deals propelled Asian Equities, with Hang Seng up 1% and TOPIX up 50bp. Shanghai lost small as regulators cleared as many as nine IPOs, while the start of trading was delayed in both India and Indonesia for separate technical issues — but India then ripped 1.1% higher. Aussie climbed 40bp as a rally in Banks and Staples helped buoy stocks.
Treasuries and Bunds finally catching a bid, pressing yields lower ahead of a Pile of global inflation metrics this week, starting with China’s CPI coming in light, weighing on Mining Shares in London — some focus remains on JGB’s nearing 10bp again, challenging the BOJ. Dollar in a broad-based rally, with Sterling down on Weaker UK Consumer Spending and Euro retreating from 1.14. $/Y on 2month highs, holding 114 as market digests comments from Kuroda. Ore off small in China, but all metals getting hit with Silver down 1.2% despite losing 7% last week, and Gold nearing March Lows. Energy bulls have to be sweating, as 1% rallies in WTI and Brent have reversed sharply, with both Oil benchmarks down over 1% and thru Friday’s lows.
Get the latest Oil WTI price here.