Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Monday was the slowest non-holiday day of trading in the US since the start of the recession.
- Global markets are all trading within 0.7% of Monday’s closing levels.
- Energy markets are green, with oil nearing $50 a barrel.
Morning! Fresh off the Slowest non-holiday US session since 2007, Futures are quiet as investors digest Weaker Trade Data from China and Germany. Pretty flat across Europe, where Volumes are an abysmal 30% below normal turnover. DAX and Stoxx up 10bp with Utilities outperforming, while Insurers under pressure on Standard Life and Jewelers underperforming on Pandora’s warning. London is slightly lower, with the Miners under pressure as China Imports misses forecasts. In Asia, Aussie lost 50bp – Miners weighed as soon as China Data hit – Hang Seng climbed 70bp on Autos as Geely jumped. Macau names acted well on GGR checks – Nikkei lost 30bp, dropping under 20,000 as Softbank’s numbers were “Sell the News” – KOSPI lost small, still shrugging off headlines from the North, while Shanghai closed basically flat.
The 10YY continues to hold over 2.25%, but Bunds approached 50bp overnight and were beaten away. The DXY is weaker yet again, as Euro, Yen and A$ show gains – but Sterling nearing 1year lows against Euro. However “All eyes were on South Africa’s rand as lawmakers prepared to decide the fate of President Jacob Zuma” noted the press. Industrial metals all weaker as Ore dropped 1.5% in China, but Aluminum nears 2Y highs. Gold finally showing some life, rallying 40bp. All Green in Energy, where WTI upside 200d and nearing $50 into what traders expect will be heavy Inventory draws as Saudi jawbones the commodities higher.