From Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! US Futures are drifting around unchanged, off very small despite Oil being down 1% as API comes in three times higher than that predicted. Over in Europe, it’s mostly green as Travel & Leisure rallying back small and the street digests earnings releases. The DAX is up over 1% as Discretionary, Tech and Materials rip higher, but broader measures of Europe equities are more subdued as Financials retreat. In London, the FTSE is basically unchanged as Energy and Materials retreat as the City grips with fresh “Brexit” calls due to Brussels. In Asia, Shanghai added 40bp, while small cap ChiNext re-enters a bull market, rallying 20% from 2016 lows, while the Nikkei retreated 30bp. Aussie lost 50bp as resources stocks retreated on Woodside headers. Across Europe and Asia, volumes were very light, with most exchanges trading 30%+ below normal turnover.
Evans and Harker hawkish comments yesterday have the $ jumping again this AM, as FOMC members try to get the market to prepare for 2+ hikes in 2016. Most gains are coming from the British Pound, as Sterling three-month volatility spikes to six-year high. The US 10YY remains near yesterday’s highs as Bunds remain over 20bp, but that Japanese long-end was a ripper again overnight, driving 30Y JGB Yields below -11bp. Hard commodities are weaker across the board, with Ore retreating 80bp in China, but precious metals like Silver and Gold are getting hit for 1%+ early. The Energy complex is mixed, as API shows an overall build of +8.8MM (2.46M barrels expected), but bigger draws in Cushing and Gasoline may support the complex into DoE data later today.
Ahead of us today, we get the Unemployment Rate in Brazil at 8am, then attention turns to US Housing with the release of New Home Sales for February at 10. At10:30, we get that DOE data for Crude, Gasoline and Distillates. At 10:30, The US Treasury is selling $13B in 2Y floaters. At some point today we get the release of the AIA’s Architecture Billings Index for February (a leading indicator for commercial real estate). Down in Washington, at 11am House Speaker Paul Ryan delivers remarks on the “State of American Politics.”