Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- There are 130 S&P 500 companies reporting earnings this week.
- The Spanish IBEX is moving higher as Catalonia tensions ease.
- Brent crude oil is trading near $US60.
Morning! US Futures are starting under some pressure, with Russell down 30bp as we have a week full of Catalysts ahead of us (130 S&P earnings, Muller on Russia, Trump on Fed, FOMC, BoE, BOJ Decisions, and the Jobs Report) — It was Daylight Savings “Fall Back” in Europe over the weekend, EU closes 12:30et this week for Equities. Apple Suppliers are leading to upside in Europe and Asia, and Catalonia Angst is receding, with IBEX up 1.4%. DAX is up 11bp, but feels like every sector is in the red, while FTSE is off 20bp as Sterling jumps – HSBC couldn’t save the Fins in London, but the Miners rally green behind GLEN #s. In Asia, Nikkei unch – Hang Seng down 30bp – Shanghai lost 70bp, while Smallcaps on ChiNext lost 2.5% to 1month lows – KOSPI up small – Aussie up 30bp as banks rallied
The US 10YY is ticking downside 2.4%, but stress coming off in Europe as Spanish Yields tightening to Bunds. Overnight Focus was on China’s 5Y Yields jumping 13bp as angst builds on a slowdown, and $US150bn maturing this week — The Dollar under slight pressure as we await Trump’s Fed Pick, with Sterling jumping into the expected BoE hike this week, and Euro nice bounce $US1.16 as German Retail Sales outperform. That Kiwi Dollar getting smoked again tho. Ore off 1% as “China Stockpiles Surge” — but Industrial Metals like Copper are trading higher — of note, Gold is unch despite the DXY reversing hard from 95. Brent holding upside $US60, and WTI up 20bp and testing the atmosphere upside $US54 early.
Get the latest Oil WTI price here.