Reports that a US government shutdown may be averted for now appears to have sparked a round of short covering and bargain hunting ahead of the weekend. US index futures are up 0.7% to 1.4% with NASDAQ futures leading the way upward and Dow futures trailing. In the wider context, however, today’s early rally has not clawed back all of yesterday’s losses of 1.3% for the Dow and 2.0% for the NASDAQ.
Meanwhile, capital continues to rotate into defensive havens like Gold which is up 0.5% and trading above the big $3,000/oz round number, and Silver, which is up 1.4% and trading just below $35.00/oz. This suggests that through the distortions of each day, investors remain concerned about a weakening global economy, the risks inherent in growing trade wars, and political uncertainty in many places.
In Europe this morning, the Dax is up 2.0%, while the FTSE is up 0.7%. Commodity trading is mixed with Crude Oil up 0.8% trading near $67.50, Natural Gas down 1.5% and Copper holding steady. The US 10-year treasury note yield is steady near 4.30% heading toward next week’s Fed meeting. The US Dollar is sliding, enabling the Euro to climb 0.5%, and the Loonie to gain 0.2%.
It’s a quiet day for economic and business news, keeping focus on the political sphere. Monday brings retail sales reports for the US and China.