Thursday, August 28, 2014

A.M. Confusion

Futures (ES) have slid to lows of the week on several ongoing stories. For one, we had an extremely bad batch of data out of Europe today while at the same time Reuters says that ECB action is not to be expected unless there's a dramatic slide in inflation. German, Dutch, Italian and French Sovereign yields have slipped to new record lows.

Then we have the Ukraine saying Russia has invaded, then correcting the statement saying "Russian troops have been brought in to Ukraine", rather than invaded Ukraine. Then we have this from  NATO  according to Bloomberg even after the retraction, 



"NATO estimates there are currently 20,000 Russian troops in the border region to Ukraine, says a North Atlantic Treaty Organization military officer speaking to reporters today on condition of anonymity at supreme headquarters in Mons, Belgium. 

Well over 1,000 Russian troops now operating inside Ukraine: officer

Russian troops in Ukraine operating advanced equipment, serving as advisers for separatists: officer

As a result of Ukraine becoming more effective militarily starting in July, there has been a real upsurge in Russian activities of late. Cross border support, firing of rockets and artillery shells across border, supply of more weapons: officer

Russia has effectively created second front in the south, this is an extremely effective way to take pressure off separatists: officer

Puts Ukraine forces in “dire situation” since from south Russian forces can move up to link with Donetsk forces or can even move west toward Crimea: officer

Opening of second front in south is “extremely worrying”for Ukraine’s position; there’s a risk that Ukraine military’s supply lies will be cut: officer

Officer declines to call Russian moves in Ukraine an “invasion,” instead repeatedly uses the term “incursion”"

In the US,  Initial Claims print at 298k, back under 300k while continuing claims continue to rise.

And Finally Q2 GDP revision rises to 4.2 from consensus on 3.9 on "Higher Cap-ex spending"/

In any case, this is what all index futures look like at present...
We have a small positive intraday divergence as futures have hit lows of the week.

No comments: