Dave Lutz, head of ETFs at JonesTrading, has an overview of markets this Thursday:
- US Banks jumped after they all beat the Fed’s second stress test and shared the wealth with their shareholders.
- Almost every Asian currency made gains last night.
- Most commodities are higher, except gold.
- Oil continues to rise after US inventory numbers sparked an upward trend.
Morning – Spoos adding to best session in 2 months, while Nasdaq starting in the red again, with FANG and Semis marked slightly lower. US Banks Jumping as CCAR unleashes greater Divvies and Buybacks than expected. BAC and C up 3%. US Fin sentiment has Banks higher across Europe, but most exchanges are deep in the red as currencies rip higher against the Dollar. DAX is off 40bp as Tech and Discretionary retreat. Volumes are pacing average. FTSE acting a bit better, in the green as the Miners join Banks in rally mode. All about Fins in Asia – TOPIX climbs 60bp – Hong Kong jumped 1% as the “crash stocks” from Monday rebounded- Aussie jumps 1% as Banks ripped higher – KOSPI up 60bp to fresh records
Global government bond prices continue to weaken, driving German and US 10YYs higher. Eyes on the DXY taking out November 8th Lows – Sterling thru $ 1.30 as Haldane joins Carney in Hawk-Speak – Euro higher as German Inflation comes in better, and Almost Every Asian Currency made gains overnight. Commodities all loving the Greenback, and Ore leapt 4.3% in China, which has Copper up nearly 1% early, but Gold is NOT participating despite the Greenback Tailwinds. Energy all higher – WTI still going, getting upside $ 45