Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
Morning, and Happy Friday! The “Melt Up” continues as Airlines keep propelling Transports, while JPM is up 1%, setting the pace for BLK, WFC, PNC this AM. Nasdaq lagging as AMD falls 3% and FB 4%, but the QQQs are still bid. Overseas, the “DAX and FTSE impressively holding onto gains as Euro and £ trade at highs for the year” notes our team in Mayfair. Germany is up 20bp as Consumer leading to upside, while Fins are holding recent gains, while FTSE is up 20bp as Melrose for GKN helps, but those Consumer stocks are squeezing again. In Asia, TOPIX lost 60bp with industrials and consumer discretionary stocks under pressure despite Fast Retailing – Hang Seng jumped 1% as Energy shares rallied – Shanghai up small, adding to it’s longest winning streak (14 days) in 25years – Taiwan added 60bp – KOSPI up 30bp, and Aussie flats despite Miners jumping 1.3%
Ahead of US CPI, Bund Yields are retreating from 61bp but remain higher, while the US 10YY drifts near 2.55% as we await the week’s most important print. Dollar sharply weaker as Euro thru $US1.21 to 3Y highs as Merkel forms a coalition – Sterling seeing relief from recent Brexit-related selling – Aussie nearing 80c. The Weaker Greenback Propelling Gold to 4M highs, but Copper in the red as Ore hit for 2.2% in China. Energy mixed, as Natty continues yesterday’s bid, while Brent is retreating from $US70 as Reuters reports Trump punts the Iranian Sanctions decision to Congress