The Fuse
What are futures doing?
Equity futures are modestly lower but well off the lows of the overnight session. Losses overseas and higher crude prices continue to bother stocks and with a potential rate hike coming there is no room for making mistakes. This is a treacherous market here that can slip very easily.
News
Weakness continued overnight with the STOXX in Europe down nearly 1% but with only slight losses in France and Germany. FTSE was down modestly. The US dollar moved higher last night and is trading at a two week high, gold and silver are down slightly while crude remains well-bid. Yields are up across the curve, the TLT is down (20 yr). bunds rallied up again (yield) and now are at 3.53%, highes in nearly 15 years. In Asia, the Nikkei was higher by .6% but Shanghai and Hong Kong down about .6% each.
Volatility
VIX moved up smartly yesterday but calmed down, it is right back up again this morning but also off the highs. Perhaps after the fed decision on Wednesday there could be some volatility selling hit which might bring a relief rally.
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