- Reuters/Brendan McDermid
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US stock markets are reaching record highs again. Mario Draghi, president of the European Central Bank, speaks today. The US dollar is stronger this morning. Hard commodities are down. Oil is also down slightly.
Morning! The Gamma “melt-up” into expiry tomorrow continues, with SPY, IWM and QQQs adding to their record highs despite many bellwethers weaker: AA, CHRW, QCOM, AXP and FCX among them. Into the ECB (7:45 headlines, 8:30Draghi Presser). In Europe – DAX rallying 40bp behind the big Exporters and as Tech continues to climb in 20% heavier turnover – Swiss Market is basically unch in heavy volume as Watch Exports jump 5% in June. In London, FTSE up 70bp despite Airlines getting hit on EasyJet numbers, while Staples strong on Unilever. Asian Trade loved Technology – TOPIX up 70bp as Tech gained – Shanghai and Hang Seng added 30bp, while Aussie added 60bp as the relief rally in the banks continued
The US 10YY drifts just above 2.26%, but some selling in Bunds ahead of Draghi – Treasuries will take their early cues there. Dollar a pretty broad-based rally this AM – Aussie $ retreating small on Inflation data – Sterling falling below $1.30 despite better Retail Sales – Euro approaching $1.15 as profit-taking takes hold, while $/Y getting back upside 1.12 on BOJ Headers. In Commodities, Some heavy profit-taking in China overnight, with Ore down 3% while Rebar lost 5%, while Gold is retreating 40bp on the strengthening Greenback. Brent struggling just under $50, and WTI off small into contract expiry later today. Natty bid on the US Heat-Wave continues into Inventory Data later this AM