- Thomson Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of markets this Tuesday:
- Google was fined $2.7 billion over antitrust issues, a much higher fee than expected. UK markets are higher as Miners and resource stocks performed well, even as UK retailers are under pressure. 10 year Treasury yields are climbing ahead of several Fed speakers, including Janet Yellen. Copper, Oil, Gold and Iron Ore are gaining early on Tuesday.
Morning! US Futures starting under some pressure, as Nasdaq drops 40bp as semis fall, WDC is a “Sell the News”, and the Google EU Fine much sharper than expected. It is a sea of red across the Atlantic, where the DAX is down 40bp with only the Fins in the green. Autos under pressure as GM warns and parts supplier Schaeffler guides lower. London faring a bit better as Miners and resource stocks acting well, but UK Retailers under pressure on Debenhams warning. Volumes are actually pacing relatively heavy early. In Asia, KOSPI record close – Nikkei added 40bp as Yen broke lower – Aussie down 10bp as Banks finally rebounded, offsetting weakness in retailers as managers dumped ahead of Q End, while Hang Seng down 10bp, but focus on a group of 17 stocks that were smoked
Ahead of 4 FOMC speakers, including Yellen, the 10YY is climbing stateside back over 2.15%, but a Upbeat Draghi has the Dollar getting smoked in favor of Euros. Commodity Currencies are acting well, but watch Brazil’s Real as President Temer is officially indicted. Commodities acting very well as the $ falls and Chinese Industrial Profits post better – Iron Ore Surges 5% as Premier Li Says Economy to Meet Growth Goals, which has metals bid, and even Gold adding 50bp+ after yesterday’s IFO smackdown. Oil continuing to rally, climbing 1% and eclipsing yesterday’s peaks