The Fuse
What are futures doing?
Equity futures have turned lower this morning from highs after a report of more violence in the Iran/Strait of Hormuz. That may or may not be true but the risk premium has risen today, we’ll see if volatility sellers get busy.
News
Stocks are trying to rally to start the first full week of May. In Europe markets were mixed, the FTSE was closed. Oil prices are rallying up 1%, gold is backing away as is silver. Yields in Germany are rising, up 2bps while US 10 yr treasuries flat. Japan and Shanghai were closed, Hong Kong up a solid 1.3%.
Volatility
Market volatility is rising this morning with a move towards 18% on the VIX. That level should act as good resistance but if it fails for a couple of sessions in a row we could see a selling spillover in the markets for a short term corrective move. Earnings and the Friday jobs report may keep the market afloat.
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