Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- Global markets are green on Wednesday and seem to be shrugging off North Korea’s latest missile launch.
- The Pound is climbing higher on Brexit divorce bill settlement.
- Bitcoin crossed the $10,000 a coin mark on Tuesday and doesn’t seem to be slowing down.
Morning! Global Futures continue higher, driven by a bevy of positive Macro headers (Tax thru Senate Committee, Powell on Banks, London on Brexit) outweighing concerns of North Korea’s latest attack on the Ocean. US Futures up 20-30bp, mirroring action overseas. The DAX is climbing 1% in decent volume – Banks leading stock markets in Europe and Japan higher after Powell’s Testimony yesterday caused US Banks to have their best day since March, pushing EU Fins up 1.5%, while Autos are jumping on Daimler headers. The EU Periphery is strong, driven by Greece up 2% as their Banks rip nearly 8% higher as positive headers roll. The Pound Rally a big headwind for FTSE tho, with London trading off 60bp as their Exporters get mushed. Asia shrugged off the North’s latest missile test – TOPIX up 80bp – Hang Seng lost 20bp – Shanghai added small, rebounding from early weakness – KOSPI basically unch despite Samsung continuing to be under pressure – Vietnam up 1.2% on reports the Government is selling ½ its stake in Saigon Beer, and Aussie up 50bp
Ahead of Yellen at the Joint Economic Committee of Congress today, the US 10YY is drifting near yesterday’s highs, just under 2.35% as bunds see some slight selling pressure. The DXY is basically unchanged, recovering from early losses as the Pound climbs to two-month high on Brexit divorce bill settlement. Euro was climbing after strong German regional inflation readings, but has surrendered most gains. Korea’s Won and Japan’s Yen showing no reaction to the North’s latest Missile Test. Gold off small, but eyes on Bitcoin up another 8% and well thru $10,000. Ore jumping another 1.6%, while Spot Rebar squeezes higher in China, but we have Copper getting hit for 70bp early. WTI still seeing sellers into the OPEC call tomorrow as API inventories showed another build, against expectations for a drawdown, while Natty continues the recent upward trajectory, gaining 2.5% early.