Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- A government shutdown is looming, but traders’ angst remains low.
- Cryptocurrencies are rising after a two-day bloodbath.
Good morning! US Futures are unchanged, digesting yesterday’s rally to new highs, as the street noodles over Upbeat China Data released. While the Talking Heads are focused on the “Shutdown” – we are seeing little angst as smokesignals from DC show a chance of a can kicktomorrow. AAPL headers have a fire under Tech shares globally, helping the DAX jump 40bp early, with Banks in rally mode just behind. HC Shares continue to stumble, while Yield Sectors like utilities, telecom and real-estate companies under pressure. Rising Sterling is a headwind for FTSE, which is off 35bp with every sector except for the miners under pressure. Mixed Overnight in Asia – TOPIX Lost 70bp – Hang Seng gained 40bp – Shanghai popped 90bp – KOSPI Flat, while Aussie off tiny as Miners continued to see pressure.
The 10YY Jumping over 2.6% and $ rallying on hawkish banter from Fed Heads and AAPL’s repatriation headlines, while the ECB heads still trying to jawbone down Euro. Sterling catching a nice bid, nearing $US1.39, while South Korea’s Won getting hit as their central banks stays unch. Inflation hawks are eyeballing 10Y Breaks over 2.06%, but the stronger dollar has Gold under pressure early. Bitcoin is drifting around unch as more headers come about a Asia crackdown. Ore was up 1% in China, and we finally have a bid in Copper, climbing 60bp early. WTI is resting just over $US64 as Nigeria angst and a bigger API draw help buoy the complex into DoE data in a few hours.