Dave Lutz, head of ETFs at JonesTrading, has an overview of markets this Tuesday:
The S&P 500 and Dow Jones Industrial Average hit record highs yesterday. Tech continues to drive up the European markets. Oil continues its fall with no new news but could hit a floor as early as this week. Other commodities like copper and natural gas are also down.
Morning – S&P adding to its record close early, as Nasdaq futures pop 25bp behind Big Tech. Pretty much all Green in Europe, FTSE All-World nearing record closing levels and DAX up 25bp to record levels – Theme from yesterday intact, with Tech leading Europe higher. FTSE acting well on slumping pound, but Barclay’s under pressure on headers. Spain and Italy showing some pressure, but volumes are very light across the continent. In Asia. Shanghai up small ahead of MSCI on China tonight (4:30-5:30ET) – Japan added 70bp as Telecom and Tech gained – Aussie’s Big 4 banks were smacked on yesterday’s Moody’s downgrade, causing ASX to lost 80bp – Taiwan up 70bp as Apple suppliers jumped and Macau in favor as June GGR continues to rise
The 10YY off small ahead of 2 more Fed Speakers today, while the Dollar holding gains from hawkish headers from Dudley as Sterling on 1week low on dovish Carney headers. $/Y continues to rally, smacking into the 100dma as investors re-embrace leverage. Ore lost small in China, and Copper is getting hit for 60bp early. Eyes remain on the Energy complex, with WTI Breaking down hard to November 2016 Lows this AM. No real headlines out there, just angst over US Production (API data tonight, focus on refined builds) along with ramps in Nigeria and Libya. This week may find the floor – only 16% of Futures traders surveyed are bullish on Oil. Natty Gas showing zero life after yesterday’s ~5% smackdown.