The Fuse
What are futures doing?
First day of the new month and the ES futures are not in a happy mood. Stocks look poised to fail sharply at the open after a miserable Monday performance. We often see good money flows coming at the start of the month but September may be a different story.
News
Asian markets were lower overnight, Japan off by .15%, Hong Kong down .9% while Shanghai slipped .16%. The dollar is slightly higher, gold down better than 1% while silver down more in volatile trade. Crude oil is higher and pushing towards $90 on WTIC. Global bond yields are higher, STOXX was down .6% led lower by France and Germany. The FTSE down .9%. Yields are up, german bunds rose 3bps while 10 yr US treasury yields were up 3bps, too.
Volatility
We mentioned last week the dangers of low volatility that made the markets vulnerable to some downside, even if the VIX rises up to say 17-18%. That appears to be happening, there is no bid in the market this morning but sellers are taking charge.
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