The Fuse
What are futures doing?
It is the last trading day of August and the bulls are stumbling to the finish line. Without too many catalysts to push markets higher the macro news is driving the action. ES futures are down about 12 handles but well of their overnight lows, both Nasdaq and the Industrials are lower as well.
News
Minor losses in Japan overnight, same for Hong Kong but Shanghai picked up .9%. The STOXX in Europe down modestly led lower by Germany. FTSE rose up .3%. Gold is sliding a bit, silver up and crude oil gaining 3% on renewed tensions in the Strait of Hormuz. Bunds rose up again, hitting 3.29%, 10 yr US treasury yields fell by 1bp.
Volatility
VIX closed last week at lows for the year so it is bouncing back a bit today, about 5% or so. That seems like a lot but considering how low the fear index is currently it is just getting back what was recently lost. It remains far too low and cries out for a corrective period.
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