Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US stock markets are trading in the green Tuesday.
- Bitcoin is slipping, while Litecoin, a smaller cryptocurrency, has nearly tripled over the past week.
- Brent oil is up at a 2.5-year high after a major European pipeline is shut.
Morning! US Futures starting on the right foot as Energy Commodities rally and the “FOMC Drift” starts to take hold. Industrials leading again to the upside, adding 10bp early. Pretty much a sea of Green over in Europe, where the DAX is adding 10bp with Tech and Energy outperforming. Industrials weighing a bit in Frankfurt, but volumes off 25% as traders await a speech from Draghi after the EU Close. London is up 25bp despite Profit-taking in the Fins and Miners, as Healthcare jumps 1% in early trade. It was a Weak overnight in Asia – Nikkei off 30bp as Consumer stocks weighed – Hang Seng lost 60bp as Tencent got hit for 3% and Sunny Optical 8% – Shanghai dropped 1.3% as Airlines were crushed on profit-taking due to the Brent Spike – KOSPI off 40bp despite Sammy rallying small, and Aussie managed a 25bp gain behind commodity stocks
The 10YY is hovering around week’s highs as NFIB Optimism hits the highest since 1983 – but the DXY is under a bit of pressure as Sterling jumps on UK Inflation printing the highest in 5years. Euro seeing a bounce despite a Weaker ZEW, while Petro Currencies like Ruble, Aussie, Kiwi and Krone are all acting well. No bounce in Gold despite the weaker Greenback, the Yellow metal just off yesterday’s 5month low – while Bitcoin surrenders 1.5% in early, thin trade. Ore was up 1.5% in China, but Copper remains slightly red. All eyes on the Energy Complex, where Brent is up 1.5% and at 2 1/2year highs, while front–month Natty prices in the UK are up 20% on the Forties Pipe outage and a explosion at Austria’s main LNG terminal.