US index futures this morning, and Chinese markets overnight have been stabilizing following yesterday’s selloffs. Major US indices lost 0.75%-1.00% yesterday with the NASDAQ leading the way lower as sentiment soured toward the semiconductor sector.
Trading action in Europe today is mixed. The FTSE is up 0.75% and the Pound is down 0.3% as weaker than expected UK inflation numbers have stoked speculation that the Bank of England may have room to resume interest rate cuts. Continental Europe is pretty much down across the board with the Dax and CAC falling 0.3% and 0.6% respectively.
Luxury goods retailer LVMH is down 4.8% after missing on sales, which may be seen as a sign of weakening consumer spending. US monthly retail sales are due tomorrow.
With the recent rally in US treasury yields and the US Dollar fading, Gold has resumed its upward trajectory, climbing 0.6% and taking a run at $2,700/oz. Metals in general are attracting renewed interest with Copper rebounding 1.1%, Silver surging 0.9% and Platinum rising 0.6%. Energy contracts are still soft, however. US Crude Oil is down 0.6% trading just above $70.00/bbl, while Natural Gas is down 1.5%.
Last night United Airlines ($3.33 vs street $3.14) beat street expectations, along with Morgan Stanley ($1.88 vs street $1.58, up 3.5% premarket) this morning. Railroad CSX reports results after the close today.
Canada housing starts (223K vs street 237K) were disappointing. US mortgage demand fell by 17% last week its biggest one week drop since 2020.