Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- FAANG sells off because of heavy bund selling
- It’s jobs day.
- Most of the global markets are red this morning.
- Silver flash crashed overnight and oil is getting smoked.
Morning! US Equity Futures basically flat as FT notes a “notable lack of a rebound on bond and stock markets after the previous session’s heavy selling” — The Epicentre for all trading this week has been the Bunds — Heavy selling there caused Treasury Yields to jump, thus making the FAANG less attractive. All eyes on the NFP number at 8:30 (Street 178k — Bias to downside after ADP, but I think a “bad” number is good for equities). Continental European markets all in the red, with DAX down 20bp as energy and real estate weaker, while retailers hit on Carrefour headers. UK Faring better as Sterling falls, with Staples and Healthcare seeing the bulk of buying. Light Trade in Asia, with Nikkei off small on weakness in Industrials and Consumer – Hang Seng lost 50bp as Tencent was under pressure — KOSPI lost 30bp despite Sammy record profit, while Aussie was hit for 1% with Consumer and Financials under some pressure.
Germany’s 10YY remains stuck on the roof, as Sovereign Yields rise globally. The notable overnight exception was in Tokyo, where the Yen fell to 2 month lows as BOJ ramped JGB purchases after their 10YY broke upside 10bp. The DXY is enjoying a broad-based relief rally, with Euro coming in, and Sterling under pressure on weaker UK Industrial Production. Metals all under pressure, despite Ore popping 2.2% in Dalian. All eyes were on the Silver Flash Crash Overnight, while Gold is off small. Right now tho focus is in the Energy Patch, where WTI is getting smoked for 3% with the entire curve under hard pressure as headlines blame ramping US Production.
Get the latest Oil WTI price here.