Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
Good Morning! US Futures are in rally mode as the FOMC “Drift” and better Earnings roll thru. QQQs your upside leader again, as FB, INTC and AAPL all add to recent gains as Internet heavyweights arrive in DC for a Grilling on Capitol Hill. It’s a sea of green in Europe, but on light volume with Germany closed for Reunification Day – Most exchanges trading 20% light to trends. IBEX continues to ramp higher, up nearly 1% – while Euro Stoxx50 is rallying 25bp as every group rallies except Fins. Airlines are flying this AM on RyanAir #s – In London, BP leading energy Stocks Higher – but across the continent BNP is leading banks lower. In Asia, TOPIX lost 30bp as Telecom came under pressure – Hang Seng off 30bp – Shanghai up small – KOSPI jumped 90bp as Sammy jumped 2% on #s – Aussie down 20bp despite the squeeze in Woolworths
Powell Positioning continuing, as the US 10YY is basically flat, drifting under the 2.4% level as we await the Fed tomorrow, Trump Thursday, and Jobs Friday. Euro lower on heavy data – Better GDP and Employment offset by weaker CPI – $/Y had a nice bounce off 113 as BOJ stays on Hold – Sterling remains in rally mode ahead of the BoE hike this week, while that Aussie$ is hit again as Political angst ramps. Ore shrugs off Weaker China PMI, climbing small, but drifting around June Lows, helping Copper hold Green, while Gold is floundering under $1275 as the stronger $ weighs. Oil complex quiet early, with WTI holding multiple tests of $54, while Brent was rejected from $61 earlier this AM.