Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Trump siding with the Democrats to fund the government and raise the debt ceiling is still being processed by the markets.
- Global markets are mixed. Most of Asia was red and most of Europe is green.
- Gold is near an 11-month high.
Morning! US Futures are rallying slightly, as investors await the ECB in just over 30minutes. Markets continue to digest the Debt Ceiling Deal from yesterday, as well as the Triple Hurricane Threat approaching the US Mainland. Strong Day in Europe ahead of Draghi, with the DAX squeezing 1% higher as Autos are rallying for the 5th session in a row. FTSE is adding 40bp despite Sterling above $US1.30 — but those Financials continue to see selling pressure. Volumes are decent, with most markets trading 20% heavier to trend. In Asia – KOSPI up 1.1%, it’s best day in 3 months – Nikkei added 20bp as Consumer names rallied – Hang Seng lost 30bp as Fins and Tech got hit – Shanghai hit for 60bp, while Aussie basically unch on heavy dividend payouts
Treasuries are seeing a bid this AM, pressing yields down 2bp as the Dollar gets hit. Fed Funds back down to 25% as peeps eyeball December Bills seeing yields pop ahead 3 Fed Speakers (Mester, Dudley & George) today. Dollar selling broad-based: Euro just off 2 1/2yr highs despite weaker German IP – Swedish krona is unchanged after they held rates – Loonie holding yesterday’s rip to 2Y highs – China’s Renminbi set at 16month highs. Ore and Steel lose 1% on Pollution Curbs in China, which finally has Copper on the retreat, but Gold remains just off 11month highs. WTI off small, while Gasoline is starting to see some upward mojo.
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