- Thomson Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- European markets are mostly green. The Mexican peso is holding the bulk of Tuesday’s gains. Iraqi-Kurdish tensions continue to support oil prices.
Morning! US Futures are well bid, with Russell up 40bp as allocators sell Treasuries, but Nazzy lagging despite Big Blue adding 5% early. Sea of Green in Europe, with DAX up 50bp – EU Futures have been on the upswing sine Draghi spoke about Economic Reforms – Tech shares seem to be leading to the upside, while Chemicals weaker on Akzo Nobel #s. Spain’s IBEX is the sole market in the red, as angst builds into Catalonia endgame tomorrow. FTSE up 30bp despite miners weaker and Staples getting hit on Reckitt Benckiser. Mostly Green overnight in Asia as North Korea opted not to test a Missile – Nikkei up small for 12 in a row, but Kobe steel led Industrials lower – Hang Send basically unch – Shanghai added 30bp as China’s Congress opens – KOSPI off small – Aussie unch as a rally in Fins was offset by Mining Headers – Rio hit on US Fraud Charges – BHP hit on production #s – Markets in Malaysia, Singapore and Sri Lanka were closed on Wednesday for holidays
Ahead of comments from Fed’s Dudley and Kaplan, Fed Funds up to 97% for December, up from 87% yesterday and 80% a week ago. The US 10YY getting upside 200d as Bunds get sold, while the “Policy Sensitive” 2YY on years highs. DXY continues its trajectory, as Euro weaker “ahead of a flurry of speeches from ECB officials” while the Sterling is drifting under $1.32 as Brexit angst cap gains. Eyes on the Peso holding the bulk of yesterday’s NAFTA headline gains. Ore up 1.5% “as Xi says China needs to deepen reforms” – but all other industrial metals are weaker, and Gold falls as Havens retreat and the Greenback rallies. Iraqi / Kurd headers continue to support the Oil Complex. WTI up 70bp as API showed double the expected draw, but gains capped as the Gasoline Complex showed yet another large build.