Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Tuesday, Aug. 15.
State of Play
Yesterday saw a late-day rally to push the Nasdaq to its biggest gain of the month. Overnight news out of China was not good and that is weighing on markets. As of 0645 we are looking at risk-off:
Stock index futures are pointing to a drop at the open, led by small caps. The Russell 2000 (IWM 0.00%↑) is down 0.8% whilst the Nasdaq (QQQ 0.00%↑) and S&P 500 (SPY 0.00%↑) are down about 0.7% each;
Commodities are selling off, with copper down 1.8% thanks to the China news. WTI crude oil’s losses are more contained, down 0.7% to trade around $82/barrel;
Bonds aren’t doing much after a sell-off yesterday. The 2-year yield is unchanged at 4.98% whilst the 10-year is up 5 basis points to 4.24% (yields move inversely to prices).
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