Good morning contrarians! Stock futures are dropping anew apparently over concerns of Chinaβs Covid restrictionsβ¦
Itβs a massive week for earnings. Most of that tomorrow and Wednesday. For today weβre waiting on
$KO and
$ATVI.
Commodities are a sea of red, with WTI crude oil down 4% to $98/barrel. Industrial metals zinc, palladium, nickel, and aluminium are all off multiple percent. It looks like concerns about Chinaβs Covid lockdowns are finally coming home to roost. Cryptos are going along for the ride down, with bitcoin off 3% to trade around $38,500.
Bonds are seeing some bids amid this risk-off, with the yield on the 2βyear down about 10 basis points to 2.62% whilst the 10-year yield is down 7bps to 2.84% (yields move inversely to prices). This moves bond yields further off of their highs seen earlier this month.
More in todayβs briefing and podcast, now live here: