Why Contracts for Difference Matter to You
What’s in Today’s Report:
- Why Contracts for Difference Matter to Your Clients
Stock futures are mixed as investors continue to digest the Archegos liquidation drama and look ahead to Biden’s infrastructure plans due tomorrow while yields rose overnight.
The 10 year Treasury yield rose by as much as 5 basis points overnight, reaching fresh 52-week highs which is weighing on Nasdaq futures this morning (down 0.40%).
Economic data was mostly positive overnight with Japanese Retail Sales and Eurozone Economic Sentiment both topping estimates which is supporting modest risk-on and reflationary money flows this morning.
Looking into today’s session, there are two reports on the housing market due out before the open: Case-Shiller Home Price Index (E: 1.2%) and FHFA House Price Index (E: 1.0%) and then Consumer Confidence (E: 96.4) after the bell, however none of the releases should materially move markets.
There are also a few Fed officials scheduled to speak: Quarles (9:00 a.m. ET), Bostic (12:00 p.m. ET) and Williams (2:00 p.m. ET) but they are largely expected to stick to the very dovish narrative of recent.
Today, market focus is likely to return to the bond markets given the sizeable move higher in yields overnight which is already pressuring Nasdaq futures. And if the rise in yields continues over the course of the day, expect renewed pressure on tech shares which will likely weigh on the broader stock market.