Monday’s full return to trading from the holiday season saw a number of significant moves in the markets including gains of 1.4% for the S&P 500 and 2.2% for the NASDAQ, and a 4.1% selloff in US Crude Oil.
These moves appear to have been short lived as they are already being partially reversed this morning. US index futures are down 0.4%-0.6%, while major European indices like the Dax, FTSE and CAC are trading flat to down 0.5%. Treasury yields are steady with the US 10-year yield still hovering near 4.05%.
Energy prices are rallying today. Benefitting from a drop in temperatures, natural gas is up 3.5%, while US Crude Oil is up 2.7%. Weekly API US oil inventories are due tonight, followed by DOE US oil inventories tomorrow and EIA natural gas storage on Thursday as usual.
Yesterday’s currency swing that saw capital move from precious metals to cryptos is also reversing today. Gold is up 0.3%, Silver is steady, Bitcoin is down 0.4% and Ethereum is down 3.1%.
Canada posted a smaller (worse) than expected trade surplus, while the US posted a smaller (better) than expected trade deficit. Economic news is otherwise quiet until Thursday’s US consumer price report. Confession season remains quiet, although a company called Unity Software in the US announced it is laying off 25% of its workforce and airline inspections have turned up more loose screws in Boeing 737 Max 9 aircraft. Earnings season kicks off Friday with several big US banks and other large cap companies reporting results.