Dave Lutz, the head of exchange-traded funds at JonesTrading, has what’s happening in markets on Tuesday. In brief:
- US stock futures are barely green, while the FTSE in London charges towards a ninth straight record high. The dollar is little changed.
- JP Morgan’s big annual healthcare conference continues today, and could bring us some headlines from companies in the industry. In economic data, the Job Openings and Labour Turnover Survey (JOLTS) will cross at 10 a.m. ET, and the Energy and Information Administration will publish its short-term energy outlook at noon.
Good Morning! US Futures are starting slightly higher, with the Russell up 20bp early. It’s a mixed bag in Europe, with the DAX up 20bp despite banks getting hit across the continent, down nearly 1% on average. Consumer Discretionary and a bounce in Materials are leading to the upside. FTSE loving the weaker pound and seeing gains for resources stocks, with London up 40bp in 30% heavier volume than average. In Asia, Nikkei off 80bp as it opens following a 3day weekend – Hong Kong closed up nearly 1% – Aussie hit for 80bp — Banks and Energy stocks weighed. Most EM closed higher as the $ retreated in early Asian trading.
With heavy hawk-speak, the US 10YY is up small as it bounces off the 50dma. DXY basically unchanged – Sterling continues to break lower — 10 week lows against $ and 8week low against Euro. Yen a touch stronger after breaking $/Y 116 overnight. Lira continues to get slammed, and Peso nearing a fresh low. Chinese PPI jumped higher helping Ore close limit up 4% – Industrial metals acting well as a result: Copper up 1.2%. Even Gold is near 5week highs – Oil rebounding from biggest loss in a month, while Natty bouncing back from yesterday’s 5% whack. Energy Equity players will be tuned in to see how WMB’s secondary (65mln @ $29) is digested
Ahead of us today, we get Canada Housing Starts at 8:15 — the Bank of England Bond-Buying Operation Results at 9:50 — at 10am Mexico watchers will focus on Weekly Reserves Data, right when JOLTS Job Openings hits in the States. At Noon the EIA releases monthly STEO report, just before the 1pm Auction of $24 Bln 3-Year Notes from the US Treasury. After the close, we get API data for Crude (Bloomie guesstimate a build 1.6mln, with gasoline seeing a 1.3m build). Single Stock Headers roll today from JPM’s Conference (HC) and ICR Exchange (Retail/Restaurants) — and down in DC the focus is on the Senate Justice Department (Sessions) Confirmation Hearing.