Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US stocks are rising Wednesday morning.
- Most of the world is trading in the green as well.
- Oil prices are climbing.
Morning! US Futures in Rally mode, led by a 20bp pop in Nasdaq as NVDA, MU and NFLX all move ~1% higher. Smallcaps continue their lagging ways, with Russell up very small. It’s pretty much all green in Europe, with the DAX regaining 40bp of yesterday’s 1% hit. Commod stocks in rally mode, led by Oil and Metals, adding to gains among industrials, healthcare and tech. FTSE is up small despite NEXT leading retailers higher, as UK Banks retreat. Volumes very light as MiFID rolls out, with EU STOXX having 40% lower turnover, and London’s volumes are off 20% from a tag team of MiFID and Storm Eleanor rocking the UK. Asia added to yesterday’s strong session – Hang Seng up 15bp – Shanghai up 70bp – KOSPI added 30bp – Taiwan added almost 1% as AAPL suppliers popped – Aussie added small as the Miners squeezed 2% higher, but Banks tempered overall gains – Indonesia was hit for 1.4% on heavy profit-taking, while Japan remains closed.
The US 10YY is down 2bp and flatteners going thru ahead of FOMC Minutes later today. There is a Decent bid for Bunds developing, with Germany’s 10YY retreating from 45bp. The DXY is trying to get upside 92 after falling 7days in a row, touching 4month lows, while Euro trying to hold $US1.20 and China’s central bank guided the yuan to 18month highs. Sterling saw a firm reject from $US1.36 on Light UK PMI. Ore added 80bp overnight, but Copper is dropping 70bp early, while despite the $ rally, Gold is adding to yesterday’s rally which set a new record of 12 consecutive gains. Brent and WTI are shrugging off the Forties restart, adding nearly 1% – while Natty Gas is getting hit for another 1.5%
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