- Thomson Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Safe haven investments are rising after North Korea fired a missile over Japan. Stocks are down across the world and trading volumes are high.Hurricane Harvey is headed back toward Texas sending the dollar lower.
Good Morning! Havens are in favor as North Korea fires missile over northern Japan – Gold adding 1% – Treasury and Bund Yields dropping fast, and that Swissie to 1month highs. Overnight S&P Futures see the most volume of 2017, hitting Spoos for 70bp, while VIX Futures climb 10% – Retailers not helping, with FINL off 26%, KSS and FL off 3%+. Euro stocks are pacing worst session of 2017 – DAX loses 1.7%, smashing below 12,000 and the 200dma as Euro leaps higher, while the FTSE is down 1.4%, partially due to Insurers re-opening after yesterday’s holiday. Volumes are heavy, with most exchanges trading 40% above 20d averages. Asia not a fan of the North’s Test, but the 20bp selloff in the South was quite muted, while the KOSDAQ (The South’s Nasdaq) posted gains. Nikkei lost 45bp, with Fins under pressure on the surging Yen – Hang Seng down 35bp – Aussie hit for 70bp as Banks continue to get worked – Sensex lost 1.1% as Nifty futures rolled, while Shanghai climbed small, while Thailand jumped almost 2%
The US 10YY dropping 6bp to November levels, while Bund Yields are approaching 30bp. All eyes are on the $25B, 4 week auction today (Matures near Debt Ceiling). The Dollar under pressure as Harvey veers back towards Houston – Euro upside $1.20, a first since Jan2015 – $/Y hitting April Lows on the Peninsula angst, while China’s Renminbi hits 14month highs. Metals are all ebjoying the falling Greenback despite Ore hit for 3.2% overnight. Nickel, Zinc and Platinum all up over 1%, while Copper adds 50bp. Energy Complex all in the red – WTI remains lower despite Harvey, and disruptions in Libya and Columbia – While Gasoline is falling despite Harvey’s path taking it into Port Arthur. Softs are all red, save Cotton, which is up small as concern ramps on Texas Crops.