* U.S. equity index futures suggest opening gains
* European shares hover near 1-year high
* Bitcoin crosses $50k for first time ever
* Dollar up; gold falls, crude gains
* U.S. 10-Year Treasury yield ~1.26%; highest since March
Feb 16 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
CANNABIS + SPAC! WHAT'S NOT TO LIKE? (0903 EST/1403 GMT)
Some European investors may have been inhaling quite a lot of FOMO during the latest green rush which pumped up cannabis stocks on the other side of the pond.
Kanabo's London stock market debut today is perhaps a good opportunity to exhale some of it with the Cannabis company jumping 300%.
Sure, Kanabo isn't exactly in the same league of Canadian and U.S. pot stock giants, like Tilray , whose market cap is close to 4 billion dollars.
Kanabo, which has been taken public through a reverse takeover by cash shell company Spinnakers Opportunities had an initial market cap of 23.4 million pounds.
Still, the surge in the share price illustrates quite neatly the frenzy around pot stocks and SPACs.
Beyond that, it's also an encouraging signal for the London stock market.
"London may be set for a boom time for cannabis listings with Kanabo the latest to IPO today after MGC Pharmaceuticals last week", commented Neil Wilson from Markets.com.
"It follows the FCA’s decision last year to allow medical marijuana companies to list in the UK, which could create a major European trading hub for cannabis companies which is currently dominated by Toronto and New York", he added.
Some reading:
Israeli cannabis firm Kanabo to be bought by UK's Spinnaker [nL4N28C33X)
Here's what Kanabo's quote window looks on Eikon right now:
(Julien Ponthus)
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S&P 500: ANOTHER BOUT OF DOUBT? (0851 EST/1351 GMT)
The S&P 500 closed at a fresh record high on Friday, and with CME e-mini S&P 500 futures suggesting a gain of about 20 points at the open, the benchmark index looks to build on its recent strength.
With this, however, a contrarian measure of sentiment, based on the CBOE equity put/call (P/C) ratio, is exhibiting a pattern that has, since late 2018, preceded periods of significant market instability:
Of note, last week, the 5-day moving average of the P/C ratio once again, flirted with multi-decade lows. Indeed, this measure's low readings can flag an excessively bullish, or especially complacent market , vulnerable to a reversal.
That said, what may be a more robust bearish signal is when the moving average starts to rise, and then makes a higher-low, against a higher SPX closing high. This pattern developed ahead of declines of varying degree over the last two years or so, including the severe sell-offs in late 2018 and early 2020.
As it stands, in the wake of its 37.6% December 7th trough (its lowest reading since March 2000), the measure has put in higher lows at 37.8% on January 14, and 38.4% on February 11. It has now ticked up to 42%.
Thus, this measure may be signaling cracks are forming in what has been steadfastly bullish sentiment. If so, instability may be just around the corner, unless its December trough gives way.
This as the Dow Industrials may be at a tipping point
and the Nasdaq faces a brick wall.
(Terence Gabriel)
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(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
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