Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Nasdaq is trying to recover from its worst session since June, as many of the hottest tech names fell sharply on Wednesday.
- The US Dollar is rising.
- WTI oil is rising as traders await an OPEC production decision.
Morning! Nasdaq trying to bounce back from its worst session since June, but so far a uninspiring 40bp bounce with NVDA and NFLX only ~1% higher. The beneficiaries of yesterday’s rotation, Banks and Retailers, are drifting around unch. Overseas, Tech remains for sale in Europe and Asia, while Banks remain well bid. DAX is up 80bp tho, with every sector in the green, but Semis under pressure, with Dialog off 1%+. Stronger Sterling has FTSE lagging, with London trading 20bp higher. In Asia, Nikkei gained 60bp, but Tech smoked everyone else – Hang Seng got smoked for 1.5% as Tech followed Tencent’s 2%+ hit – Shanghai lost 60bp, Shenzhen 90bp as Chinese Financials were under pressure – KOSPI down 1.5% as Sammy hit for 3.5% and Hynix 6% – While Oz lost 70bp after the launch of a judicial inquiry into its financial industry
The US 10YY kissed 2.4% in the overnight, before weaker EU data caused a bid in Bunds, knocking Yields slightly lower. The DXY is in rally mode, despite Gilts continuing to get hit as hawks eyeball a Brexit resolution and Sterling 2month highs. A Big miss in German Retail Sales and weaker EU Inflation prints, while that $/Y 1 week highs. South Korea’s won falls after first rate rise in 6 years. Bitcoin was rejected from $US10,000 again overnight, will be interested in today’s action with a $US9,000 “Floor” set yesterday. Chinese PMIs drove their 10YY down 5bp, and is sparking a bid in Commodities. Ore jumped 1.5% in Dalian, while Rebar adds to this week’s 4% gain. Copper is up 60bp, while the $ has Gold under some pressure. WTI up 1% as the OPEC Decision looms, and the market has priced in a 9month extension to the end of 2018
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