- Thomson Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Fed Chair Janet Yellen testifies before Congress today at 10 a.m. ET.European markets are all higher. Oil is up 1.5%.
Good Morning! US futures are in rally mode ahead of Yellen (8:30 Speech release, 10am testimony) – with Nasdaq adding 30bp as NVDA, AMD and GILD are all 1%+ higher. It’s a sea of green across Europe, with the DAX climbing 70bp as Energy Companies outperform on the commodity’s strength – while Consumer Discretionary stocks rebound on solid numbers from Burberry in London. FTSE up 90bp, as Miners, Banks and Healthcare sectors all climb 1%+. Volumes remain light, with Frankfurt trading ~20% below normal turnover. Strong action in Hong Kong, with the Hang Seng up 80bp and back over 20k – while the China Enterprises index leapt 1.5%. Red otherwise, with China off 30bp – Nikkei lost 50bp as the Yen strengthened, and Aussie hit for 1% as the banks were all under pressure down under.
Very Interesting action in Sovereigns, where the German 10YY is jumping 5bp, but US Yields continue to slide a touch, with the 10YY struggling with the 2.35% level. DXY up small, as the Euro just off 2year highs against the Greenback on stronger EU Industrial output. The Loonie is flat ahead of Bank o Canada, while Pound higher as UK Employment data beats. Metals are mostly higher with Ore holding yesterday’s gains, and Strikes in Chile supporting Copper. Decent overnight in Energy names with Oil up over 1.5% as API showed a much bigger draw – while Traders are watching Lumber as wildfires consume forests in BC. Grains continue to see profit-taking from the recent strength.