Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US markets are under pressure amid angst over the pending government shutdown deadline.
- Tech continues its multi-day slide.
- Oil is dropping.
Good Morning! US Futures under some pressure, but rallying from overnight lows, as Angst over House antics on Short-term spending bill ahead of Friday’s Shutdown Deadline causes concern. Tech still lagging, with QQQs off 40bp worse than Russells, which just went green. Nothing but Red overseas, as the DAX drops 1% following a Sloppy session in Asia. Tech stocks the biggest weight in Europe, while Consumer weak on Steinhoff headers. The FTSE is basically flat as Staples hold up London, while those Miners continue yesterday’s selling. In Asia, Nikkei smoked for 2% as Tech and Commodity names got hit – Hang Seng lost 2.2% as Sunny Optical and Geely got worked – Shanghai off small, only Shenzhen in the Green in Asia, up 60bp – Taiwan off 1.7% – KOSPI down 1.5% as Sammy drops 2.5% and Steel stocks weakened, while Aussie down 44bp as Miners pace the commodity drop
Ahead of ADP today (Street 190k, but “whisper” at 218k), the US 10YY drifts toward 1week lows as the Bund 10YY fell below 30bp on stronger German Factory Orders. The Greenback has a bid, with Euro diving to test yesterday’s lows near $US1.18 – Sterling drifting around $US1.34 – A$ hit on lower GDP, while that $/Y saw a double 112 test on risk-off and Korea angst. With the weaker $, Gold has rallied 50bp, and is back over the 200dma, while all the Talking heads are babbling about the Bitcoin hitting fresh peaks. Ore was hit for another 3%, but we have Copper rebounding 1% of yesterday’s 5% smash. WTI is testing last week’s lows below $US57 – While API showed a bigger Crude draw, the massive 9mil+ build in Gasoline stocks weighs.