- Thomson Reuters
Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- World markets are mostly green. Hurricane Harvey damage estimates are now well above $100 billion. Gold is coming down as North Korean tensions cool.
Good Morning! Futures are higher on Strong Chinese Manufacturing, with Basic Resource names jumping in Europe. The S&P is up 25bp, but the unwind continues against Russell shorts, pressing smallcaps 40bp higher early as Harvey Cost estimates well eclipsing $100bn at this point. In Europe, nothing but green as the DAX climbs 50bp, distancing itself further from 200d as Euro longs unwind. FTSE up 70bp, as Banks and Miners jump higher. Volumes are still in summer mode tho, as DAX trades 30% below normal turnover. Mixed bad in Asia – Nikkei continued to rebound, adding 70bp as the Yen falls – Hang Seng retreated 40bp and Shanghai off small as Banking stocks were a “Sell the News” from earnings – Taiwan held recent gains – KOSPI down 40bp, and Aussie closed up 80bp
The 10YY is up small, holding yesterday’s move from strong ADP and GDP numbers into out NFP print tomorrow. The Dollar Shorts continue to get mushed, as Euro hit despite Stronger EU Inflation, Aussie lower despite better commodity prices, and that Yen continues to see heavy selling. Ore surges 3.1% in Asia after China steel industry’s PMI jumps to 16month peaks, helping Copper pop 1% and about to retake 3Y highs. All Industrial metals are gaining, save Platinum – while Gold is gravitating back towards that $1300 level. Headers that the Colonial Pipeline is shut has Gasoline squeezing another 5% this AM, while WTI sees a very tentative bid, trying to hold above $46