The Fuse
What are futures doing?
A sharp rise in the ES futures along with the Industrials after a blue wave cleared the midterms with a resounding win for the Democrats. Technology still seems under pressure even after strong earnings from AMD, but the Nasdaq is barely up as it struggles to move ahead.
News
After a brief stumble in the ES futures last night the STOXX held on and had a robust gain, up 1.5% led by strong wins in Germany and France. Lots of green on the screen, FTSE up 1.7%, gold is higher by 2.5% as is silver, crude oil down 2%. Yields are falling with the 10 yr falling 5bps to 4.9%, bunds were mostly flat. In Asia, Japan modestly lower but Shanghai up 1.5% and Hong Kong up a strong 3%.
Volatility
As often happens after an event passes the VIX collapses under its own weight. Volatility is removed as the uncertainty goes away, we know who will lead Congress and Senate, no dispute here. However, VIX is still somewhat elevated in the 18’s so it’ll take a few more down sessions in volatility to break the minor uptrend.
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