Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US futures markets are flat this morning.
- The rest of the world is mixed, but mostly flat.
- Gold, silver and copper are all lower. Oil is up slightly and natural gas is getting hit pretty hard.
Morning! US Futures basically flat, with Nasdaq slightly higher, but Russell floundering under the 50d. Europe is weakening as the session rolls on – DAX is down 20bp on this biggest day of numbers this earnings season – Industrials weighed down by a 3%+ whack in Siemens, but Autos recovering some of recent weakness on BMW #s. Stronger Euro hit Merck, while another Auto-Parts company (Continental) struggled. Fins struggling across the continent, but Italy outperforming as UniCredit jumps on #s. In London, FTSE up small as Retailers rally behind NEXT update and Miners on Randgold. Volumes are light in the City tho, with FTSE trading 20% below normal trend. In Asia, KOSPI was hit for 1.7% as yesterday’s Tax headlines weighed and Samsung was whacked for 2.5% – Taiwan’s Taiex retreated 50bp from multi-decade peaks – Hang Seng off 30bp as Retail Sales disappointed – Aussie lost 20bp, weighed down by Rio
The US 10YY drifts just above 2.25% as investors await tomorrow’s Payroll data. The DXY just off 15month lows, with Euro lower as Weaker EU PMis weigh. While Sterling direction awaiting BOE at 7 as it rests near 11month highs. $/Y is basically flat, and commodity currencies like the Aussie $ are broadly lower. No rebound in metals, with Gold, Silver and Copper all 50bp+ lower – while the Oil complex seeing a weak bounce early. Natty Gas the commodity to watch – it has been hit for 5% over the last week into today’s inventory report.