Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
Morning, and Happy Jobs Friday! Street is at 90k, but after data this week, “Whispers” are closer to 210k, with the high street guesstimate at 230k – All focus is on Wage Growth. Northeast still reeling from the Storm, with 1200 flights cancelled. EU Markets having another strong day, with the DAX jumping over 1% on the back of Strong German Retail Sales. Healthcare acting very well, while EU Banks continue yesterday’s rally. London is up 30bp, led by Consumer and Staples, while those London banks continue to underperform. Another strong overnight in Asia – Nikkei adding almost 1% to yesterday’s surge as Yen fell – Taiwan recovered from early weakness to close 30bp higher – Hang Seng up 25bp – Shanghai up 20bp – KOSPI jumped 1.3% as Tech rallied behind Sammy, while Aussie added 70bp as Metals and Miners jumped 1%+
Ahead of NFP, Treasury and Bunds are basically unchanged, while Eyes overnight were on Japan’s 10YY, which has moved to 2month highs. The $ basically flat, with the A$ weaker on trade data number and $/Y weaker as Japan Services posted light – while Light EU Inflation data has Euro retreating further from Yesterday’s $US1.21 peak. Gold is retreating from near 4M highs, while Ore dropped 90bp after jumping 2.5% this week. Profit taking continues in Copper, with Spot contracts off 2% this week. WTI is off 1% and nearing a $US61 test, while Brent continues retreating from 3Y highs