Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
Morning! US Futures are jumping, with Russell up 50bp as Earnings rolls and the Dollar falls. EU markets are all basically flat as we await the ECB (Call 7:45, Draghi Presser 8:30 amET) later this AM. DAX is up small, with Tech rebounding, Healthcare up small and Fins going bid – On the flip side Media and Travel companies weigh. In London, FTSE flat asbids in Healthcare and Miners is balanced by drops in Banks, but Consumer names in rally mode with Diageo jumping on #s. Good Selling night in Asia as the Dollar tumbled – Nikkei off 1.1% as Yen rip caused selling pressure in the big exporters like Sony – Hang Seng off 90bp as Financials got hit and Tencent lost 2.3% – Shanghai lost 30bp, Macau slid after MGM fell on delays to the new Cotai casino – KOSPI up 1% to records as Samsung jumps 2% – Aussie off small despite Miners loving the commodity rally. Banks and Utes the biggest weights down under.
JGB’s were rejected from near the BOJ’s 10bp target overnight, that has some weakness in Bund and Treasury Yields, but that 2YY remains stuck near the recent roof as the market now prices in 3 Hikes in 2018 at 53%, 4 nearing 18%. The Dollar still losing ground – Euro drifting around 3Y highs, just over $US1.24 – Sterling retreating from $US1.43 as UK Mortgage approvals collapse – $/Y trades near 109 – A $ Stronger as S&P reaffirms, while EM FX was watching Malaysia hiking for 1st time in 3+years. The Weaker Dollar propelling Gold still, and in China Ore was up 1.4%, rebounding from a 4% whack this week – that has Copper up small. Energy complex all bid, with WTI thru $US66 to upside early.