Traders have returned from the holidays in a positive mood. US Index futures are up 0.4% to 1.0% with NASDAQ futures leading the way higher. In Europe today, the Dax is up 1.2%, the CAC is up 2.0%, but the FTSE is flat. Asia Pacific trading saw Japan lose 1.5% and India lose 1.6%, while China and Australia were quiet.
Despite the 10-year treasury note yield holding near 4.60%, the US Dollar is under broad selling pressure today. The Euro, Pound and Loonie are all up about 1.0% this morning, Gold is up 0.2% and Silver is up 2.6%. Bitcoin is taking another run at $100,000 with a 0.8% gain so far today.
Commodities are also strong this morning. Natural Gas is up 7.5% on anticipation of a January deep freeze across much of the eastern US, while Crude Oil is up 0.7% and approaching $75.00/barrel. Copper is also on the rise with a 2.3% gain.
Service PMI reports from around the world have been rolling in generally above 50 in expansion territory and above street expectations. Japan and the UK disappointed slightly. US S&P Service PMI (street 58.5) is due at 9:45 am EST, followed by US factory orders at 10:00 am (street -0.3%).
It’s a busy week for economic news headlined by US ADP payrolls on Wednesday and US Nonfarm Payrolls plus Canada employment on Friday. On the political side, Congress meets today to certify the US election and President Trump is currently expected to be sentenced on Friday following his trial last year. US markets are closed on Thursday for the state funeral of President Carter.
Confession season also starts in earnest, the time between the end of the quarter and the start of earnings season where companies who have missed expectations tend to put out profit warnings. Walgreens Boots and Delta Air Lines report results on Friday.