Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Monday, May 12.
State of Play
News of this China-US trade deal is greatly helping risk appetite as we eye or board of indicators for signs of direction at 0655 ET:
Stock index futures are rallying in a major way. Small caps are leading the charge, with the Russell 2000 up 4.5%. Nasdaq futures are 4% to the good with S&P 500 up 3%;
Commodities are seeing a surge in oil prices — WTI crude is up 3% to trade around $63/barrel — as precious metals drop with the risk-on mood. Gold and silver are down 3% each;
Bonds are dropping, keeping with the risk-on theme, with the 10-year yield up 8 basis points to 4.45% (yields move inversely to prices);
Cryptos are surprisingly flat, with Bitcoin unchanged at $104,000.
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