Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
Morning, and Welcome to the kick off of Earnings week, with several major US Banks posting Friday, and As the bellwether JPM HC Conference kicks off, we awaken to 2 Biotech deals this AM. US Futures are starting off a touch weaker, as Investors rotate back into Treasuries early. It’s a decent session in Europe tho, where the EU Stoxx 600 is kissing 3Y highs as the DAX climbs 40bp behind a solid rally in the Autos. Fins are red tho, as a bid develops in Bunds. FTSE is Lagging as Tech hit behind Micro Focus, and Healthcare and Staples both rest in the red. Another green overnight in Asia – Hang Seng up 30bp despite a 10% rip higher in Country Garden – Shanghai added 50bp – KOSPI added 60bp – Aussie up small as Miners finally took a breather, but HC and Fins rallied, while Japan was closed for Holiday
The 10YY is dipping under 2.47% early, while those 10Y Breakevens remain upside 2% – The DXY is bouncing from 4M lows on chatter the Bank of Korea acting to pressure the Won – Euro trying to hold $US1.20 as German Factory Orders post light, but Confidence and Retail Sales outperform, while the $/Y is nearing a 113 test. Ore jumped 3.2% overnight and Rebar added to it’s 8.5% gains last week, but Industrial metals are starting the week in the red stateside. We do see a bid in Oil stocks again, as the DIP in rig Count is supporting prices this AM
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