Observations + Charts
Europe trading cautiously higher while US futures are not doing much so far.
Asia mixed with China rebounding following latest intervention headlines and Japan giving back yesterday gains.
Greater China surging (CSI1000 snaps 7d of losses) but markets need more substantial announcements.
HSTECH +675bps biggest daily gain since March23. HSI since Jul23.
NKY & TPX closed slightly lower snapping 2d of gains showing that traders are still cautious and not ready to switch to China yet.
Europe is trading cautiously higher on the back of China and amid earnings/macro.
Macro focus on German factory orders data, which saw a big jump in Dec.
Energy names leading so far helped by BP earnings and making biggest gains in a year.
Cyclicals +80bps / EU growth +55bps back in the green offsetting yesterday losses w/MSEECYDE trying to break out.
Semis mixed post earnings with IFX -230bps (reduce FY guidance, slowdown in auto demand) and BESI +360bps (street initiation).
Luxury names also mixed with LVMH trading slightly down after a street downgrade.
Seeing strength in Defense names BA/ RR/ LDO AIR +1/3%.
DXY +10bp. Brent -20bp. US nat gas flat while +160bp in Europe. Bitcoin +130bp to ~$42.9K while gold flat.
US futures flat to small down ex-NQ w/ESH4 -1.25, HIWH4 -87.00, RTYH4 -8.60 and NQH4 +25.50.