Dave Lutz, head of Exchange Traded Funds at JonesTrading, has a short overview of what traders are chatting about on Monday.
- US stock futures are lower, but getting some support from Bank of America’s earnings beat. Stocks are lower in many major markets outside the US amid lower trading volumes.
- The pound is lower even after news that the UK plans to pay billions into the European Union budget after it leaves the union.
- A new Wall Street Journal/NBC News poll has Hillary Clinton ahead of Donald Trump by 11 percentage points among likely voters.
US Futures are down 30bp, but well off the AM lows as BAC pops 2% on #s. Sea of red overseas, with Financials the only group that is trading higher in Europe. Volumes pacing very light, with most exchanges 30-40% below normal trends.
Nikkei gained on falling Yen, but all red otherwise – Hong Kong stocks among the biggest decliners on news that Chinese authorities detained employees at casino operator Crown Resorts for suspected gambling crimes — While Chinese “B” shares were clobbered for 6% in afternoon trade.
Dollar remains just under 7month highs as Euro sees some buying, but Pound under pressure despite headers UK looks at paying billions into EU budget after Brexit – Plan would let finance sector keep single-market access.
US 10YY touched 1.81% in the overnight — U.S. and U.K. leaders on Sunday threatened Russia with sanctions and other measures to pressure it to change course on Syria — and Citi warns on market complacency – Global markets could be only “a small trigger” away from a big reversal, according to a Monday morning note.
WTI is off small despite US Rig Count up 33% in last 5months and headers Iran to Boost Oil Output to 4 Million Barrels.
With 22 days till Election — A Fresh Wall Street Journal/NBC News poll finds Clinton led Trump by 11 percentage points among likely voters – A separate Washington Post/ABC poll has the race much tighter w/Clinton up only 4 points, but Reuters puts Clinton’s odds of securing 270 Electoral College votes at 95%.
Investors are awaiting a raft of global economic data this week, including U.S. industrial production on Monday; U.S. and UK consumer prices, and UK producer prices on Tuesday; and Chinese third-quarter gross domestic product on Wednesday. The European Central Bank will publish bank lending figures on Tuesday, hold its policy meeting on Thursday and euro zone consumer confidence data for October is due on Friday.
Ahead of us today, we have a active day of headlines: Credit card charge-offs throughout the session – Empire Manufacturing at 8:30 – Industrial Production at 9:15 – ECB Publishes Weekly QE Data at 9:45, just before Bank of England Bond-Buying Operation Results at 9:50. The Lunch Hour includes Fed Vice Chair Fischer Speaking at 12:15, while Icahn, Tepper and Gundlach hit CNBC during “Fast Money” — At 1:15 we get ECB’s Draghi, Bundesbank’s Weidmann speaking in Frankfurt. IBM, NFLX and UAL all report after the close.