Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- United Airlines and GE got hit after their earnings reports.
- Gold is at four-month highs.
- Cryptocurrencies are trading higher after a slow start to the week.
Morning! US Futures are breaking higher, led by a 20bp pop in the Dow as the shorts cover GE on the headline, but those Transports under pressure on UAL getting hit for 7%+. Ripping Pound and Euro are bringing out the equity sellers overseas, but the DAX is clawing back from losses to trade near unch – Healthcare was outperforming on Novartis but has since turned red – Utilities hit as Suez gets drilled, while Tech underperforming on TXN and weak iPhone checks in Asia from JPM. The FTSE is off 40bp as every sector gets hit, paced by a 1.5% drop in Healthcare. In Asia, Nikkei gave back 70bp as Fins were hit for almost 2% – Hang Seng up small. It has now rallied 22 of the last 24 sessions while Shanghai climbed 40bp, the 17th rally in 18 sessions. KOSPI up small while Aussie up 30bp.
Decent selling in JGB’s set the tone overnight, driving German and US Yields higher. The Greenback is getting smoked as Mnuchin says weaker dollar ‘good’ – Sterling thru $US1.41 helped by better Employment Data – Euro squeezing thru $US1.23 into ECB tomorrow as PMIs come in better and $/Y smashing under 110. With the weaker Greenback, Gold fresh 4month highs. In China, Ore flat after a 4% hit this week, but we r seeing a Rebound in Industrial Metals with Copper up 1.3% early, but losing ground as US Traders get in. Higher API Inventories is being shrugged off by Oil, with WTI up 20bp early, while Nat Gas rip continues – up 3% after climbing 10%+ yesterday