Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US markets are rising as the S&P 500 is looking for an eighth-straight day of gains.
- The Spanish IBEX is making small gains after tensions from a Catalonia independence vote sent the market falling on Tuesday.
- Tomorrow is jobs day, and traders are placing an 82% chance of a rate hike in December.
Morning! US Futures are climbing, with the S&P going for 8 straight. Mixed bag in Europe, with the DAX down 25bp as Healthcare names get hit, and Tech sees some profit-taking. There is a Slight relief rally in IBEX, with the Spanish market climbing 80bp after a 10Y bond sale is well oversubscribed. No Bid in Italy, as Banks continue to flounder. FTSE is up 20bp with Anglo continuing to rip higher, up 11% in 5 days, but the Fins are under some pressure. Quiet overnight in Asia with Shanghai, Hong Kong and Korea still closed – TOPIX lost small, but Asahi rips as they raise beer prices and exporters like Sharp, Nintendo and Toyota enjoyed the Yen weakness – Taiwan up 50bp after being closed y’day – Aussie closes just red despite Airline rally on GS Quantas upgrade. Aside from the Italian and Spanish Equity markets, volumes are relatively subdued globally.
Ahead of tomorrow’s Jobs data in the US, Fed Funds are up to 82% for December after yesterday’s ISM blowout. The DXY is testing yesterday’s highs, as the Euro is drifting around 7week lows into ECB Minutes — Sterling getting hit below $US1.32 on Theresa May angst, and the A$ hit on weak retail sales down under. The US 10YY fighting around the 200d as bunds continue to see a bid, while Spain’s yields are in slightly. Metals are mixed, with Copper hitting 3week highs and Gold trying to show some life, but Nickel and Platinum remain red. WTI trying to hold upside $US50, while Natty is in the red ahead of Inventory data later today
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