Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US markets will start in the green.
- Many European markets are sliding for sixth straight day.
- The US dollar is getting hit.
Good Morning! US Futures are starting basically unchanged, while Europe going for 6 down days in a row as Chinese data posts weak. The DAX is off 10bp, with but almost every sector in the green, but Energy shares and Materials are the biggest weight to downside. Tech stocks recovering from recent selling, while Fins drift around unch. London up 20bp, Tesco and weaker Sterling helping FTSE while Telecom rallying behind VOD’s 4% pop. Volumes are decent, with most exchanges trading 20-30% above recent trend. Weaker Chinese Retail Sales weigh across Asia – No bounce Nikkei after 3 days of heavy selling – Hang Seng off small – Shanghai dropped 50bp – KOSPI off small, but Korea’s tech-heavy KOSDAQ rips another 2%, bringing 5day gains to 8% – Aussie off 90bp in heavy volume as Woodside weighs on Energy
We had Multiple headers from Draghi, Carney, Kuroda and Yellen from a Conference, but focused on “communication”, not Policy. US 10YY rejected from 2.41% overnight as Bunds see buying, while there was Heavy overnight chatter about China’s 10YY approaching 4%. The DXY is getting mushed early, as Euro jumping thru 1.17 to 3week highs on stronger German GDP, but Sterling falling under the 100d on lower inflation and Brexit/May Angst and Sweden’s Krona hitting 1Y lows on weak inflation, while Aussie$ hit as Government angst ramps – Eyes will be on Venezuela with S&P saying they are in default. Commodities generally lower on weaker Chinese data – Ore off very small, holding the last week’s surge, holding all metals in the red early, while Oil slightly weaker as IEA says US Crude output “Set to Rocket”. Keep an eye on Natty — Reversing last week’s gains quickly, dropping over 2% in the early go.
Get the latest Oil WTI price here.