- Thomson Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US markets are green Friday morning.
- The US dollar is falling after Robert Mueller issued subpoenas to members of Trump’s campaign.
- WTI oil is rising.
Morning, and Happy Expiry Friday! US Futures are mixed, with the Spoos slightly lower, steadily rallying as more US traders man their Bloomies. Nasdaq in the Green, paced by a 4% pop in AMAT – Europe is mostly Green, as Commodity Stocks continue to recover, while Media stocks are jumping globally on M&A chatter. 6 IPOs today, perhaps the most active issuance morning in 2017. 1 Priced above range (SAIL), 2 Priced below (SFIX, BXG), 1 at low end (SCPH), and one pulled (MOLC). Waiting on pricing from LEVB. In Europe, the DAX is up 10bp, led by a nice pop in those German Banks, while flows roll from Italian and Spanish Financials. My friends in Stockholm getting hit tho, with Retail getting hit on HMB, while Volvo rolls 2% lower. FTSE up 20bp as Miners miners rally, while Energy stocks are battling to stay green – Construction weaker on Carillion’s sloppy headers.
Aside from China, Asia had a decent overnight. Nikkei managed a small gain – Hang Seng up 60bp as Tencent pops another 3%. China Banks outperformed on chatter of increased PBOC allowing increased foreign ownership stakes – Shanghai off 50bp, but Retail-Oriented Shenzhen smacked for almost 3% as State media warned stocks were “climbing too fast” – KOSPI off small, while KOSDAQ finally takes a breather, off 50bp, dropping 1week gains to 95% – Aussie up 20bp as Banks popped, while Sensex up nearly 1% and India’s Rupee having a strong overnight as Moody’s upgrades the country
The US 10YY is off small, drifting around yesterday’s peaks, but the Dollar is weaker, with press pointing to Mueller’s fresh subpoenas of the Trump Campaign. Eyes are on support near week’s intraday lows. Euro higher despite a Dovish Draghi speech – Sterling touching 2week highs – $/Y hitting 1month lows, and EM FX jumping, with Thai and Malaysian currencies hitting 1-2Y highs. In China, Ore up 1% to finish the week flat, but Rebar weaker again, dropping 4.5% on the week. I see all metals bid, paced by a 1.5% pop in Nickel, perhaps on the TSLA announcement last night. Gold up 40bp on the weaker $, while Bitcoin kisses a record, days after a ~30% plunge. WTI snapping back into next week’s expiry, popping 1.6% early.