Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- The US markets are mostly ignoring North Korea’s latest missile launch.
- Global markets are mostly red Friday morning.
- Oil is rising slightly after crossing $US50 a barrel for the first time in weeks yesterday.
Morning! US Futures are off small on the North Korea Missile as WSJ reports “Markets not taking Pyongyang’s test ‘too seriously'” – Havens initially jumped, but have retraced — Gold, Yen Swissie and Treasuries all lower. SPDR funds like SPY, XLF, XLE, etc all go ex-divvy today, and S&P is off 10bp as one has to wonder if US equities are being artificially held higher due to Expiry into Retail Sales. DAX is off small as Consumer names rally, but FTSE off 1.2% to 4month lows as Sterling soars and a IED goes off in the Tube, injuring at least 18. Volumes are all explosive to the upside, but all due to Options Expiry globally. Asia shrugged off the North – Nikkei added 50bp and “Mothers” 1% – Hang Seng up 10bp behind Tencent – Shanghai hit for another 50bp – KOSPI up 40bp, while Aussie hit for 75bp as Fortescue got smoked
Gilts are getting hit as Hawks circle London — The US 10YY pecking at 2.2% again as Germany’s 10YY hits 1M highs. Fed Funds this AM now at 56% for December, up from 31% last Friday. DXY is getting hit, as Sterling flying thru $US1.36 as BOE’s resident dove Gertjan Vlieghe talks impending hikes and the Euro gets legs off $US1.19. No NK Angst as $/Y is flying thru 111, while Bitcoin is getting smoked for another 10% today, bringing the week’s losses to 30%. In China, Ore off small, but has lost over 13% in September, but Copper is showing a bid early while Gold slides despite the falling Dollar. The Oil complex is adding small to yesterday’s gains, while Gasoline is popping another 1% early.
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