Dave Lutz at Stifel, Nicolaus passes along the topics that people are talking about today.
Good Morning – Futures are rolling off their best levels, and the DAX is up only slightly as EU Fins come under profit taking pressure – losing 1.5%. The Nikkei surged 2.3% on the back of a weaker Yen – China rebounded as GSAM says Chinese stocks are becoming attractive – Aussie jumped 1.7% as a low inflation print boosts Rate Cut chances – Sensex was unchanged as weight of Expiry there builds into tomorrow.
The € has a slight bid, despite increased chatter of a ECB rate cut on a German Ifo Miss – Yen remains weaker to the $, but nearing critical resistance around Y99.80 – Yields in Spain and Italy are wider, as are US, as Japanese Investors shifted money back towards JGB’s overnight. The NZ$ is much stronger after refraining from a rate cut overnight (NZ$ the #2 FX used in the “Carry Trade”) – The € bid has the DXY under pressure, a natural tailwind for commodities – We have a Nice rebound in Copper, up 2%, while Gold is up 60bp and continues to outperform Silver – Eyes will be on ABX today. The Oil Complex is slightly higher, as Brent continues to gain ground over $100 – WTI discount to Brent is out 70c overnight, as more negative Keystone headlines mount.