Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Tech stocks are dragging down the Nasdaq again.
- European markets are all slightly green.
- Asian markets seem unaffected by North Korea’s latest missile launch.
- Most commodities are down, with oil off 1.7%.
Good Morning! Seems Groundhog Day on US Futures, with S&P and Dow up small, while Nasdaq Falls 20bp as Mega-Tech stumbles, and Russell Minis drop 50bp. Major Markets in Europe are all green though, albeit slightly — with DAX up 11bp. Industrials and Financials are leading to the upside, while healthcare lagging. FTSE up small, with the Miners leading the gains on CS upgrade — but Healthcare weighs in London as Citi downgrades Glaxo. Volumes are pacing their 20day averages early. Asia mostly shrugged off North Korea’s latest launch, with KOSPI rising 30bp and Topix 55bp — Aussie was hit for 40bp as Fins came under renewed pressure, but Shanghai popped 80bp on chatter Pensions ramping investments. EM Asia was bid up across the board, save Indonesia which lost 70bp.
The US 10YY is holding all of last week’s gains, resting at 2.35% ahead of today’s Fed Minutes, while both JGB’s and Bunds saw continued selling, pressing yields up near recent peaks. Weaker Euro PPI is finally taking the wind out of Euro, while Sterling mostly shrugging off weaker UK PMI. $/Y is in full honeybadger, hitting the highest in nearly 2 months despite the latest angst around the Korean peninsula. While Ore rebounds from yesterday’s 4% smack to gain 1%, Copper is down 1.3% and Brent had a clean rejection from $US50 yesterday, and Oil off 1.7% this AM as Russia Said to Oppose Deeper Production Cuts — weighing on commodity Currencies like Aussie and Canadian Dollars.
Get the latest Oil WTI price here.