Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- The US stock market is trading higher as Trump addresses Davos.
- The South African rand is trading at three and a half year highs.
- WTI oil is maintaining its three-year highs.
Morning, and Happy Friday! US Futures are in a good mood, with Spoos up 30bp, just behind Nasdaq’s 40bp advance as INTC pops 5%. Pretty sea of Green over in Europe, but the bid has been fading as Euro pops 40bp against the Dollar. The DAX is basically unch, with Banks and Exporters under pressure, but LVMH helping Discretionary outperform. The FTSE Shrugging off a ripping Sterling, climbing 50bp as healthcare and Banks outperform. Over in Asia, Nikkei off 20bp as declines for energy stocks offsetting gains for the healthcare and consumer – Hang Seng ripped 1.5% higher as Big-Cap China leapt 2.2% – Shanghai up 30bp – KOSPI up 50bp – Aussie and India were closed for Holiday, and EM remains on fire, with MSCI’s bench up over 3% since Monday
Some decent selling in Bunds have German Yields back upside 60bp, propelling US10YY near 2.65% again – but Currencies and Sovs are awaiting a bevvy of speakers this AM – Trump at 8:30, Carney, Kuroda at 9amET. The Dollar is retreating a bit, UK GDP has sterling near yesterday’s highs, but the Euro rejected from $US1.25. Plenty of eyes are on South Africa’s Rand, ripping to a 3 1/2year high. n China, Ore lost 1.5% but finished off week’s lows – this has some selling in Industrial metals, with Copper off 20bp. Despite the Dollar, Gold is getting hit for 90bp early, while headers Coincheck in Japan stopped transactions has the Crypto Crowd selling early. Energy remains strong – WTI remains bid, near 3Y+ highs – while Natty Gas continues the week’s tear, adding another 1.4% early.