- Brendan McDermid/Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Global markets are mostly red. The US dollar is slipping on tax reform angst. Gold is moving higher.
Morning! Some weakness in US equities, with the Spoos marked off 10bp as Flows head towards Sovs. Pretty much all red across continental Europe – The DAX is down 15bp as Airlines weaker on Lufthansa and Air France. Heavy profit-taking on Wizz Air #s the chatter, while Banks are weaker on Credit Ag and ABN numbers. In London, only Staples and Materials are in the green and Eyes are on a sharp lower reversal in MKS, but FTSE is up small. Volumes are good, with the DAX trading 30% above Trend. A breather in Asia after yesterday’s rip higher – Nikkei off small as Banks get slugged but Tech rallies – Hang Seng down 30bp despite China Literature leaping 86% – Shanghai up small – KOSPI up 30bp as KOSDAQ jumps 1.3% – Aussie up small – India off 50bp, bringing week losses to 1.5%
A sharp bid in German Sovs has Bunds hitting YTD highs, dragging down US Yields, with the 10YY trying to hold 2.3% in the overnight. Angst over US Tax Reform has the DXY off since mid-day yesterday, but Euros are failing to hold upside $1.16, while the $/Y had a sharp reversal from 114 overnight. Ore off small after jumping almost 7% last 2 days, holding Copper and Nickel in the red, while Gold is seeing some life thanks to the falling greenback. Brent coming off 2Y highs as API reports a smaller draw than expected and China’s imports dropped – Natty gas reversing some of yesterday’s gains, dropping 1% early.