Markets are down this morning in both the US and Europe as of 8:30 am ET, owing to the lack of a new stimulus package from Washington and the introduction of tighter restrictions in some of Europe’s biggest cities due rising Covid-19 cases.
Markets in Asia slipped as China’s producer price index fell by 2.1% more than expected. Hong Kong’s Hang Seng was down more than 2%, followed by the NIKKEI at -0.51% and the CSI at -0.17%. Gold is down as the dollar and US treasuries rise. Oil has fallen by nearly 3% on Covid-19 restrictions causing less demand.
Paris has imposed a nighttime curfew and in London there will be a ban against mixing with other households indoors starting this weekend.
Tech stocks are trading in negative territory after the Financial Times reported that EU competition authorities may look at potentially breaking up dominant firms such as Apple, Facebook, Google and Amazon.
Morgan Stanley reported third quarter profits of $2.7 billion this morning, or $1.66 per share, exceeding the $1.28 estimate of analysts.
Weekly jobless claims numbers came in this morning at 890,000, which was higher than the 825,000 that was forecasted.
Overall market volume was down yesterday and this was seen in SPY’s volume of 57 million shares and QQQ’s 37 million. SPY’s volume on Wednesday was 25% lower than Monday’s and QQQ’s 50% lower. Invesco’s new fund QQQJ (NASDAQ Next Gen 100) saw 1.5 million shares traded on its second day.
IGBH (iShares Interest Rate Hedged Long-Term Corporate Bond) saw buyers while trading 16.8 million shares, almost $400 million notionally. Prior to yesterday, the fund only had $36 million in assets. Also active was LQDH (iShares Interest Rate Hedged Corporate Bond), which traded 1.2 million shares and has seen buyers as of late.
Other fixed income ETFs were also active yesterday. iShares 10-20 Year Treasury Bond (TLH) traded 1.7 million shares, 9x average. iShares 5-10 year Investment Grade Bond (IGIB) traded 8.8 million shares. (iShares 1-3 year treasuries (SHY) traded 8 million shares. Schwab Aggregate Bond (SCHZ) traded 1.3 million shares and Vanguard Long-Term bond (BLV) traded 1.2 million shares.
High yield saw above-average trading in ANGL (VanEck Fallen Angel) at 2.3 million shares, USHY (iShares Broad High Yield) at 3.7 million shares, HYG at 31 million shares, while JNK traded only 4.9 million shares, which was 50% of its average.
It is not just the Amazon Echo that people are buying on Prime Days. ProShares ONLN (Online Retail) traded 2.6 million shares, the largest day ever for the ETF.
Fidelity’s Utilities (FUTY) saw buying while trading 3.4 million shares, while XLU (SPDR Utilities) traded below average.
Pacer saw buyers in its Benchmark Data & Infrastructure Real Estate Sector ETF (SRVR). The fund traded 2.8 million shares.
Amplify’s Black Swan ETF (SWAN) saw buyers while trading 2.5 million shares.
GLDM (SPDR Gold Minishares ) traded 5 million shares, 2x average. GLD traded below average, at only 9 million shares.
Bank ETFs were active with all the financials reporting. KRE traded 11 million shares, 1.5x average. VFH, KIE, DFNL and KBWB also traded heavily.
IndexIQ saw activity in QED and QLS.