Good Morning Campers! Looks like we're back into stocks-down & metals-up again, both w/ yesterday's trade in metals rebounding coupled w/ NASDAQ's distribution, into today's futures action. Some say yesterday's move was in response to the bad industrial numbers that came after the good industrial numbers, but the fact that we've been in a goodnews-badnews mode for so long makes it easy to see more of the same coming next. At any rate, today's reports are wholesale prices (PPI) and capital flows (Net Long-Term TIC Flows). Here's our biz-world stack'o'stuff:
- World stocks hit one-month low, focus on Fed Reuters - 9 hours ago LONDON (Reuters) - Global shares slipped to a one-month low on Tuesday as markets braced for a Federal Reserve meeting, when investors will be looking for clues on whether the U.S.
- So What Exactly Is Alibaba? Forbes - 39 minutes ago You all know the headlines: the biggest ever tech float. The biggest ever Chinese float. The biggest ever US IPO. In fact, after yesterday's increased price range, very likely the biggest IPO ever, with the potential to raise over US$25 billion.
- High Cost of Tax Inversions - Lewis Uhler & Peter Ferrara, Washington Times
- Going bananas when corporations flee By Robert Knight Socialism in its many guises depends on the use of force. Its animating principle envy means seizing wealth and redistributing it.
- Live Longer & Better, Thanks to the Market System - Editorial, Investor's
- Why Did Microsoft Just Pay $2.5B for Minecraft? - Kevin Roose, New York
Dave Lutz of JonesTrading has the top topics about which traders are talking about today:
Good Morning! US Futures are starting in the red, with Russell underperforming again as Global Growth concerns were not abated last night, with German economic confidence in current conditions plunging in as worries about Russian sanctions mounted (Rouble to new lows as the cease-fire comes under pressure overnight) and Doves retreated in China after news that foreign direct investment fell sharply last month. Alibaba lifts range to $66-$68, up from $60-$66, and today should wrap the bulk of the fundraising for the IPO. Overseas, the FTSE is losing 80bp in good volume, and Sterling is lower as polls continue to illustrate the Scottish vote is on a knife-edge. The DAX is off 40bp, while we are seeing decent volume in the EU periphery markets as PIIGS yields are rising and French Equities are not stressed about Frances socialist government facing its second confidence vote in less than six months around 1pmET. Japan was under pressure after their 3day weekend as Banks retreated We cannot discount the impact of Chinas shoddy data over the weekend causing the Global Growth retreat yesterday, and that may continue today with the Shanghai Composite losing 1.8% in 1.5x normal volume Industrials, Tech, Energy were all hit for ~4% in Shenzhen. That, coupled with RBA minutes hit the A$ to 6M lows overnight.
The Oil complex is back under pressure (key upside leadership group yday), with Brent only momentarily bouncing from the roll-over of the October contract ahead of WTI storage data the next 24 hours. Part of the Selloff must be blamed on Fed Concerns, as many key groups (Biotech, Internet, Smallcaps) had recovered towards pre Yelloff heights when Janet called out overvaluation. Tightening fears (along with China) have been weighing on Emerging Markets The FTSE Emerging equity index is on course for its longest run of losses in more than 10 years. Keep an eye on that Policy Sensitive 2YY, its been getting gappy to the upside lately, adding nearly 20bp in 4 weeks. Commodity players also remain focused on the crowded short in Grains and Beans Corn and Wheat had big upside reversal days yesterday, and are jumping 1%+ again this AM. Scheduled catalysts today include PPI at 8:30, Fed’s Hunter Speaks on Community Banking at 10, we have the weeks largest POMO at 11. Today is expiry of the current VIX contract as well.