The Fuse
What are futures doing?
Equity futures are feeling some pressure this morning as oil prices climb as do yields. Oil futures are pushing towards $100 per barrel and nothing seems to be stopping it, the Iran War just will not end. Industrials are getting hit hard again, now down nearly 1000 points in two sessions. Inflation numbers later in the week might shake things up even more.
News
Once again STOXX finished off 1.5% overnight, just down a fraction but France and Germany were hit pretty hard. Japan was down about .2%, Shanghai up slightly but Hong Kong down .8%>. Gold is up slightly, silver flat and crudie oil rallying another 2%. The US dollar was lower, yen surging higher. German 10 yr bund yields surged and are now at 15 year highs, 3.38%. 10 yr US treasury yields ticked higher and is back above 4.8%, getting comfortable at higher levels.
Volatility
VIX rose up early on Tuesday but faded and then rallied a bit, but it still shows market complacency is high. Eventually that is going to be removed, but it is more like pulling teeth, it’ll be tough and long and painful.
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