From Dave Lutz of Stifel, Nicolaus, here are the top topics this morning:
Good Morning! There was a Huge rally in the $US and Yields overnight on headlines Summers to be nominated next week — both have mostly reversed as traders man their desks (This is well expected by the markets at this point) — US futures are mixed, with NDX outperforming again despite AAPL being marked lower. EU markets are mostly weaker, with only the DAX near unchanged in very light trading (Yom Kippur begins at Sundown), as headlines spark selling in Italian Banks (LCH Clearnet changes) — In Asia the Nikkei was up small in heavy volume, as the Yen fell against the Dollar on Summers chatter. EM Asia retreated however on Summers tapering concerns — with Indonesia off 1%, Sensex off 25bp, and Malaysia mostly flat.
To be honest, just shows that Summers is well expected as Nikkei headlines hit well before these markets closed. US Yields are flat, retreating off the initial Summers spike — and the DXY, while well off overnight peaks, is elevated, providing a headwind to commodities.
Gold continues it’s weakness as we head into Summers Nomination and FOMC next week, snapping under the 50dma causing technical selling — and the Gold Miners are all marked lower again on the metal’s collapse and continued angst in South Africa. The Crude Complex is under pressure, but Brent well outperforming WTI (Dollar move) as Syrian headlines showing mixed progress. While Friday the 13th is considered an unlucky day in Western superstition, Bespoke notes since the Bull Market began in March 2009, On Friday the 13th the S&P 500 has averaged a gain of 0.01% with gains in only three out of seven occurrences. For the sake of comparison, the average change of the S&P 500 for all days during this bull market has been a gain of 0.09 with positive returns 56.3% of the time.
For more on what’s going on, see 10 things you need to know before the opening bell.