The Fuse
What are futures doing?
Equity futures are mixed this morning as we await word about the August employment report. This is often a market-moving event and could swing fed funds futures if it falls to extremes.
News
Europe shares dipped a bit overnight with the STOXX down .2%, Germany off as well as France. FTSE fell .2%. The US dollar fell sharply yesterday, gold is off after a big rally Thursday, as is silver, crude oil down modestly but holding above $90. Yields are down slightly with a modest bid in bonds. Hong Kong was up nicely, higher by 1.7% but Shanghal lost ground, the Nikkei gained 1.6%. US 10 yr yields were mostly steady at 4.77%, bunds fell smartly, down 2.5bps to 3.35% as the global rout in bonds has abated for now.
Volatility
The VIX has once again fallen into the 14’s and is starting to get comfortable there, which makes us very concerned. We just cannot accept low volatility to continue driving stock prices higher, though it could happen and inflate the market to bubble levels.
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