The Fuse
What are futures doing?
Futures are mixed this am with the Nasdaq taking a great deal of the pain thanks to weakness overseas (S Korea, others). If opening here the Nasdaq will be below 30K after recently hitting new all-time highs. The Industrials are bid this am but the last few sessions saw those gains disappear by days end. PPI will have an impact, along with perhaps a chat with Kevin Warsh.
News
Poor relative performance overseas with the STOXX down .26% led lower by losses in France and Germany. The FTSE in London was up slightly. Gold is ripping higher, by 1.5% as is silver, crude oil up modestly. The dollar hit an 18 month high following the hot CPI number but did pull back a bit. Yields are dropping, the 10 yr US treasury is down to 5.10% from a recent high of 5.3%, bund yields tumbled 8bps to 3.38%. In Asia, stocks were punished. The Nikkei down nearly 5%, Hong Kong down about 1% with Shanghai losing about 1.6%.
Volatility
The VIX is trying to establish an uptrend, and with a close above 18% (couple of times) it will be game on for volatility. No doubt those worried about election issues are going to start pricing in some uncertainty, though in some areas that is not really relevant. Regardless, a split Congress might be good for markets.
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