Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- The US stock market looks like its heading for another day of selling, watch the Dow move in real time here.
- It’s the EU’s worst day since Brexit.
- Bitcoin dropped below 6,000, well off its highs near $US20,000.
- Oil is down 1.5%.
Morning! US Futures are still getting smoked, with the Industrials marked down another 1.5% early – All eyes on Volatility and some VIX Linked products potentially getting liquidated – VIX is currently trading near 50, a 33% increase from yesterday’s closing rip higher. We are seeing some Haven Action, with Gold and Treasuries bid early. It’s the EU’s worst day since Brexit, with the DAX down 2.4% – Fins the worst off, with Banks in Frankfurt off 2.6% on Average – paced by CS, the parent of XIV, getting hit for 8% in early trade. FTSE is off 2.3% as Banks and Miners get smoked, while the Supermarkets hit on Ocado. Volumes explosive, with Frankfurt trading almost 2x normal averages. Full Smokeshow in Asia as they Followed Wall Street down the Volatility Rabbit Hole with Nikkei VIX leaping 50% – Nikkei off 4.7%, Hang Seng off 5%, Shanghai lost 3.3% as technology, resources and financial shares got pummelled – KOSPI down 1.5% – Aussie hit for 3.2% as banks and resources stocks were hit, and India down 1.6%
Haven action has a sharp bid under Bunds, driving Germany’s 10YY 7bp lower, and we see the same action in Treasuries, where the 10YY is under 2.7% – Chances of a March Hike down to 69% chance from 76% yesterday. 4 Hikes in ’18 13% down from 21% yesterday. The Greece delayed bond sale due to turmoil, blowing their yields 10bp wider early, weighing on Euro. The $ is up against all the majors, but Gold still 50bp higher. Bitcoin is getting smoked again, off another 10% after testing $US6000 in the overnight. Commods all under pressure, with WTI off 1.5% and Gasoline 2%. Ore was off 1% overnight, and Copper is off 1% early.