Dave Lutz of Stifel, NIcolaus passes along the topics about which he is chatting with traders today.
Futures are sharply higher this AM by 70bp, following the DAX’s1% upside move. EU Fins are up 2%, as Italy’s yields are in sharply as the finally elect a President, and Bloomberg is reporting the EU is now split over the proposed financial transaction tax. The Nikkei jumped almost 2%, just off 5Y highs – thanks to G20 backing for Japan’s aggressive monetary policy. The Sensex was up 1% as Indian investors continue to buy equities as their inflation drop is fueling dovish speculative hopes. Eyer swill be on AAPL the next 2 days, as Forbes suggests efforts have begun to replace CEO Tim Cook, and we have Earnings tomorrow.
The 10YY is up slightly in the States, as US bonds are seeing heavy demand from Japanese Life Insurers (Nippon comments this AM) – The DXY is jumping, as all eyes are on Y100 being tested again. Thomson Reuters IFR described the stops sat above Y100 as “massive”, suggesting any breach of that level could trigger a further surge of enforced buying.
Gold is up 2.5%, and enjoying its longest rally this year on heavy physical demand. The Energy complex is higher, but WTI is lagging Brent as we have Expiry of the spot today. Concerns continue in China’s housing sector – depressing both the Shanghai Composite and Copper – off another 60bp on heavy inventory gluts. Miners overseas however are seeing heavy demand – boosting the beaten up sector.
MA Governor Deval Patrick asks residents to pause today at 2:50 p.m., the time the first of two bombs exploded.
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