Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US stocks are on the rise after the Senate passed their version of the GOP tax plan.
- European markets are mostly green Monday morning.
- Bitcoin rallied in Asia to hit $US11,800 a coin.
Morning, and Happy Merger Monday (CVS for AET, Prysmian for BGC)! Tax Optimism and ABC News softening their Flynn bombshell fromFridayhas US futures starting strong this AM, with Russell up 1%, and despite decent indications in FANG, Semis and Biotech have the Nasdaq lagging a lot. Big Sea of Green in Europe, where the DAX is up 1.3% – Industrials acting well across the Continent led by Autos, while banks remain in demand with SX7P up well over 1%, while even Tech shrugging off Dialog Semi. London is lagging a bit despite Miners higher as Ore jumped overnight, as Healthcare and Staples drift near unch. In Asia, Nikkei off 50bp as Tech stocks weighed – Hang Seng gained 20bp as Tencent rebounded slightly from last week’s smashdown – Shanghai off small, Shenzhen off 75bp – KOSPI climbed 1%, and Aussie off small as Miners were in demand
With the Fed in Blackout, we have the 10YY hovering around 2.4% and the Greenback stronger on headlines of Senate Tax Passage – Euro is weaker despite hawkish chatter from Villeroy – Better Japanese Consumer Confidence shrugged off as Yen weaker, Sterling weaker into EU Brexit Showdown Week as it ignores off a better UK Construction Print, while the Turkish Lira reeling from a strong Inflation Print. Gold weaker on Risk and Stronger $, while Bitcoin rallied as high as $US11,800 in Asia trading “as crypto fever reaches Venezuela” – Ore ripped 5% higher in China, that has Copper up 30bp, while WTI is fading from last week’s OPEC highs, and Natty up 1.5% as cold weather greets US Traders this AM