Dave Lutz, head of ETFs at JonesTrading, has an overview of today's markets.
- 12 central banks meet today, including the Bank of England and European Central Bank.
- Retail sales results that include Black Friday will be released.
- Global markets are mixed.
Morning! US Futures moving green a touch, but overnight Volumes very light as we await 12 Central Banks today! Swiss and Norway stayed unch ahead of the BoE (7amET) and ECB (7:45) decisions, while Turkey disappointed the Hawks. We are also Awaiting US retail Sales, which includes “Black Friday” – UK Retail Sales well outperformed expectations. A wide sea of red in Europe, with Banks under pressure globally, following the “Dovish” FOMC Hike, which hit US Fins. DAX is down 60bp, while Tech under pressure in Europe as they await ECB “tightening”. London outperforming a bit, as a rally in Miners helps FTSE. In Asia, Nikkei off 30bp as Telecom hit on Rakuten’s headers - Hang Seng lost small - Shanghai off 30bp - KOSPI down 45bp as Options Expiry weighed - Aussie down 20bp - EM Asia, like Malaysia, Thailand and Indonesia, all loved the falling dollar.
The US 10YY has recovered back towards 2.39% following the Dovish reaction yesterday, while there was a Slight bid in China’s 10Y as they tightened Monetary Policy. The Dollar trying to recover from the smack yesterday. Sterling getting legs over $1.34, despite Brexit Antics, as Strong UK retail sales extend the Fed rally, but the Euro off a touch despite Stronger Euro PMIs as we await the Draghi. Norway’s Krone jumped on a hawkish Statement, while Swissie fell as their Bank said the franc was “highly valued” – while Turkey’s Lira getting smoked. Gold adding nearly 1% and holding above $1250. Copper is up small despite Ore hit for 1.6% in China. Keep an eye on Oil. WTI and Brent falling thru 1week lows as IEA talks ramping US Shale Output.
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