Equity Markets

Tech Stumble Drags Global Markets Lower; All Eyes On The BOE

E-mini futures are fractionally lower this morning (0.08%) after Apple's surge helped the DJIA climb above 22,000 for the first time on Wednesday; Global shares declined for the first time in 4 days pressured by tech stocks: Asian shares fell, while Europe pared opening losses to trade unchanged.

Dow Set To Open Above 22,000 As Global Stocks Levitate Higher

Welcome to August: you may be surprised to learn that S&P 500 futures are once again levitating, higher by 0.3%, and tracking European and Asian markets, with DJIA futures higher by over 100 points this morning, the Dow Jones is set to open above 22,000, a new all time high as Asian stocks hit a new decade high.

Global Stocks Rise On "Growth Optimism", Ignore Political Turmoil; Dollar, Oil Creep Higher

S&P futures rose 0.1% on the last trading day of the month, trailing European and Asian markets boosted by China's July Mfg. PMI, which despite declining from from 51.7 to 51.4, and missing expecations  of 51.5, saw the construction index rise to its highest level since December 13, sending Chinese iron ore futures surging and the European commodity sector broadly higher.

"Why Does Extraordinarily Low Volatility Matter" Baupost Explains...

"...we remain in a market that is broadly expensive and largely indifferent to risk... This continues to be a time for patience and, above all, caution. If there is anything to be taken from Hyman Minksy's words, it is that no one should be lulled into a false sense of comfort by the illusion of stability which surrounds us... We most assurdely, are not..."

Oil & Gas Earnings Expectations Are Collapsing

Much of the recent ebulient narrative about equity markets has been based on the promise of an earnings rebound - due to beneficial comps in the oil & gas sector. That narrative just hit a wall...

Global Markets, Futures Slide Spooked By Poor Amazon Earnings, US Politics

S&P futures have tracked both European and Asian markets lower, which were dragged down by the big EPS miss and guidance cut reported by Amazon on Thursday. Meanwhile, the pounding of the dollar has resumed with the euro and sterling strengthening against the dollar due to renewed political concerns

"We May Be Very Close To The Turning Point": Selloff Blamed On This Note From JPM's Marko Kolanovic

"Growth in short volatility strategies in a self-fulfilling manner suppresses both implied and realized volatility. This in turn prompts other investors to increase leverage, and those that hedge with options lose out and eventually throw in the towel. The fact that we had many volatility cycles since 1983, and are now at all-time lows in volatility, indicates that we may be very close to the turning point."

VIX Spikes To 11 As Equity Market Liquidity Dries Up

The plunge in US equity markets continues - led by big tech names - sending VIX soaring to 11 for the first time in 3 weeks. As stocks slip, and VIX spikes, liquidity is also disappearing from futures markets, setting ETFs up for a potentail flash-crash...

Global Stocks Hit New All Time High As Dollar Rebounds; Europe Volatile On Earnings Deluge

The levitation continues with S&P futures pointing to - what else - another higher open while European stocks swung between gains and losses on the busiest earnings days of the year (85 of the Stoxx 600 report) which has seen European pharma giant AstraZeneca plunge 15%, the most on record, after its flagship lung cancer trial Mystic failed to show benefits, while Deutsche Bank slumped 4% on a 12% plunge in FICC revenue.