- REUTERS/Lucas Jackson
Dave Lutz, head of ETFs at JonesTrading, has an overview of markets this Wednesday:
- Tech could continue its decline today. FAANG, AMD and Nvidia shares are all down premarket. Most of the European markets are in the red this morning. The euro is at its 2017 highs while the dollar sinks to its lowest since Trump’s election. Oil is under pressure as American Petroleum Institute supply data came in higher than expected.
Good Morning! US Futures are mixed, with Russell climbing 25bp, but Tech looks to continue yesterday’s sloppy action. Nasdaq under small pressure, remaining under the 50d, with FAANG, AMD and NVDA all in the red early. It’s pretty much a sea of red in Europe, where the DAX is down 50bp – Exporters lagging all across Europe and UK, while EU’s Tech Sector has dropped 1.6%. FTSE performing a touch better, with a rally in Consumer and Miners keeping the FTSE green. Technology Weakness led declines across Asia – Nikkei lost 50bp, but Insurers loved the higher sov yields – Shanghai lost 50bp – Hang Seng lost 60bp – Aussie bucked the trend, climbing 70bp as Miners and Banks rallied
Dollar nearing Election-night lows as Euro hits 2017 highs as peeps positon for start of ECB tapering – Bunds still under pressure, up another 2bp this AM, after climbing 11bp yesterday, that is pressing the US 10YY sharply higher the last 2 sessions, currently nearing 2.25%. The Curve is steepening as well, so that may add some upside to the Banks ahead of CCAR later today. DXY weakness is broad-based, with Sterling back over $1.28 – Commodity Currencies acting well, with Canadian and Aussie Dollars rallying with commodities. Ore jumped another 3% overnight, bringing 2day gains to near 9%, but Copper and Zinc under pressure early. WTI and Brent under slight pressure as API data showed a much bigger build than anticipated.