|Thursday, December 22, 2016|
SPX Flat, Dollar Down, Crude Down
Global equity futures are printing mixed at their highest levels in nearly a year with some analyst alluding to a blow off top US-scenario. Traders are battling with declining volumes forming liquidity gaps seen in the SPX prior end of day session dropping -30bps. Regional equity indexes in Europe including the CAC,DAX, and UK100 are flat ahead of the imminent nationalization of Italy’s Monte Paschi, as the European banking crisis flares up. Reflation trades in DXY and UST10Y have stalled since 12-15-16.
WTI is declining -67bps after DOE data reported a surprise +2.56mm build v. (-2.5mm exp.). On the flip side, Cushing and crude products modestly drew.