Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- The US House of Representatives is set to vote on the revised tax bill.
- US stocks are moving higher.
- Bitcoin is slipping.
Good Morning! US Futures adding to yesterday’s record closes ahead of the Tax Vote (1:30 in House, Later tonight or early tomorrow in Senate). It’s pretty red overseas tho, but Euro Markets are holding the vast bulk of y’days gains. The DAX is off 10bp, but Semis are acting great, led by a 6% pop in Dialog on headers. Consumer doing a bit better as Steinhoff recovers, but the EU Fins are seeing profit-taking. London is up 20bp as Sterling falls, with every sector rallying except for the Healthcare stocks. Volumes seeping into Holiday mode, with most exchanges 20% below normal turnover. In Asia, TOPIX off small as Sony and Nintendo weighed – Hang Seng added 70bp as Airlines loved the China Travel Data – Shanghai added 90bp – Taiwan and KOSPI lost ground as AAPL suppliers broke lower – Aussie up 50bp as Fins and Miners rallied in tandem
The US 10YY was rejected from 2.4% overnight again, while the Dollar is still under pressure, but off y’days lows. Euro holding upside $US1.18 on a Stronger IFO from Germany, while Sterling can’t stay above 1.34 – Aussie Dollar is rallying on the RBA Minutes, while South Africa’s Rand continues to rally after ANC election. Ore lost 1.4% in China as Everbright Futures warns on the rally, and we have Copper off 60bp this AM. Gold is adding small, but that Bitcoin is off 2% as recent headlines become more laughable (See LFIN) – WTI seeing some upticks on headers about a explosion in Saudi as they intercept missiles from Yemen, while Natty is seeing small profit-taking after yesterday’s 5%+ surge.