Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- US Markets are slipping.
- Trump threatened to shut down the government over his border wall.
- The Mexican peso is lower.
- Natural gas is retreating.
Good Morning! US Futures are retracing some of yesterday’s gain, with Russell down 30bp and S&P off 20bp as LOW and LZB will be weighing on Home Retail. Euro exchanges are trading around unchanged, with the DAX off small, and FTSE up a touch. K+S is jumping on Elliott chatter, while the Media sector under pressure with WPP getting smoked. Retail stocks not reacting well to Laura Ashley numbers. Volumes a touch better, but still running 10% light to trend. Eyes remain on Italy skittishness, with their market falling another 50bp. Very quiet overnight in Asia, where the TOPIX climbed 25bp as it tries to rebound from 4month lows – Shanghai off small – Hong Kong exchange closed due to typhoon Hato – Aussie dropped 20bp with Tech and Utes falling, while the Nifty climbs nearly 1%
Treasuries and Bunds very quiet as the gulfstreams aim for Jackson Hole, while those Debt Ceiling Bills are not reacting to Trump’s threat to shut down the government. Italy still widening from German Yields as more concerns ramp about a “parallel currency.” Dollar under broad pressure, with the Euro rallying on better PMIs, pressing Euro-Sterling to 8year highs. The Kiwi$ hit as they slash growth estimates, and A$ further rejected from $ 0.80 – while the Peso hit on Trump’s NAFTA rant last night. Ore and Rebar hit for 5% as China’s Steel Association talked them down, and that has Copper retreating small from 3Y highs, but Nickel still in rally mode, adding 1%. WTI is off small as API showed a expected 3.6mm draw as we await DOE data later today. Natty gas down nearly 1% as it retraces the week’s gains.