Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US GDP printed 3%, crushing estimates.
- US markets are rising after big tech reported huge earnings beats.
- The Spanish IBEX is under pressure as the Catalonia “end-game” fast approaches.
Good Morning! US Futures are breaking higher as “‘Big Tech’ smashes analysts’ forecasts” — Nasdaq up 50bp as AMZN climbs 7%, MSFT 4%, INTC 3% and AAPL 1% (iPhone X pre-orders). Mostly Green in Europe, where the DAX pops 70bp to fresh All-Time highs. Euro Tech is up 70bp and Volkswagen has Autos popping — but Fins slight pressure on Catalonia Angst and UBS #s. Catalonia End-Game approaching fast, as Dueling Parliaments vote on Secession and Article 155 — this weighs on IBEX, off 1%, and Italy, off 30bp, as the Banks get hit across the board. In London, FTSE up 20bp as the Miners are getting beat on. Volumes strong, with most exchanges trading 60% heavier than normal. In Asia, Nikkei flies for 1.3% despite Subaru woes – Hang Seng up 90bp while Hang Seng China Enterprises up 1.6% to 2Y highs – KOSPI up 60bp and KOSDAQ up 1.4%, while Aussie reverses gains to close lower on Political Uncertainty
German Bunds are approaching 40bp as Spain angst ramps, but Treasuries holding 2.45% early. The Dollar is ripping higher, inflicting pain on that crowded Euro Long, as we await US GDP this AM. Euro hit on dovish ECB and Spain, Sterling under pressure into next week’s BoE hike (odd) — while that Aussie$ hit after a court ruling left the country’s government without a majority. Ore got smoked for 5.6% in China “as Winter Curbs Chill Outlook for China Demand” — Copper is off 2% early, and Nickel and Zinc are both 1%+ lower. Of note, despite the ripping Greenback, Gold hovers near unch. Energy complex all lower, with Brent rejected from $US60, while Natty drops 2% in early trade
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