Morning Quant Ride Jan 02, 2018

Jan 02, 2018

Traders’ Corner

 

US Equity Futures are pointing to a positive start to 2018. As we update our Global Top Picks for January 2018, we suggest investors focus on the macro trades we published at the end of last year.

ECH Bull Call Spread – play on an acceleration in economic growth in Chile

EWA Bear Put Spread – cross-correlation hedge for gains in Chinese equities

 

Interesting Articles to Ring in 2018

 

Click headline for story

Bitcoin Is Here to Stay—and Other Tech Trends for 2018 (Barron’s)
Machine-learning promises to shake up large swathes of finance (The Economist)
Tech That Will Change Your Life in 2018 (WSJ)

The Morning Recap

Index

Price

1 Day Return

5 Day Return

MTD

YTD

S&P 500 $ 2,673.61 0.00% -0.36% 0.00% 0.00%
Russell 2000 $ 1,535.51 0.00% -0.48% 0.00% 0.00%
DJ Industrial Average $ 24,719.22 0.00% -0.14% 0.00% 0.00%
NASDAQ Composite Index $ 6,903.39 0.00% -0.81% 0.00% 0.00%
CBOE Market Volatility Index 10.78 - - - -
Germany DAX (TR) € 12,823.91 -0.73% -1.19% -0.72% -0.73%
France CAC 40 € 5,281.20 -0.59% -0.97% -0.59% -0.59%
Japan Nikkei 225 ¥ 22,764.94 0.00% -0.60% 0.00% 0.00%
Hang Seng Index ¥ 30,515.31 1.99% 1.15% 1.99% 1.99%
Hang Seng China Enterprises ¥ 12,068.99 3.07% 0.48% 3.07% 3.07%
S&P ASX 200 AUD 6,061.30 -0.06% -0.08% -0.06% -0.06%
Source: FactSet          

 

Asian markets traded higher with Chinese manufacturing PMI came better than expected. Japanese markets are closed until Thursday.  European markets failed to catch a bid and are trading lower.  In the US markets will open for the year with a healthy dose of optimism on the back of the tax cuts.  Data for the week will include FOMC minutes on Thursday and non-farm payrolls on Friday.  FOMC minutes will be scoured for any additional clues on policy for 2018, consensus if for 3 hikes.  Any hints of anything outside of consensus will scrutinized closely.

 


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