From Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good morning, and TGIF. US futures are starting today under slight pressure, following broad weakness across Europe on the Horror in France, with 84 dead in Nice in a terrorist attack. The DAX is off 80bp, with Travel & Leisure stocks getting hit, while luxury goods and discretionary shares under pressure on Swatch. Economic concerns and profit-taking has the EU banks getting hit. The FTSE is faring slightly better, losing 30bp as Healthcare and Bond Proxies hold green. Volumes are awful across the continent, with most exchanges trading 30-40% light to trend. Over in Asia, China GDP soothed investors, and while Shanghai closed basically unchanged – Nikkei closed up 70bp as the Yen weakened – Aussie closes at a 11month high as the bank continued to rip higher, while Emerging markets wrap their best week in four months.
Seeing havens under pressure again to start today, with Gold in the red — and yields on both Treasuries and Bunds seeing upward mojo, with Germany’s 10YY approaching 0%. The DXY is under pressure, losing ground to Euro, while Pound’s recent rally is waning as Bank of England’s Haldane says strong stimulus is needed. The Yen is signalling “Risk On” tho, as $/Y breached 106 briefly for first time since Brexit before reversing. Commodities are mostly weaker, as Ore closes down 1% and Gold heading for 1st weekly loss since May — but Copper remains well bid. Energy is mostly weaker, but well off overnight lows as Oil drops 50bp ahead of Rig Count data, and Natty 70bp. Softs continue their upward trajectory.
Ahead of us today, we await earnings pre-market from: C, PNC, USB, WFC — Then we get Retail Sales, CPI, and Empire Manufacturing at 8:30 – Bank of Italy Releases their Quarterly Economic Bulletin at 9 – Industrial Production hits at 9:15, then Business Inventories and U. of Mich. Sentiment at 10. 1pm brings the Baker Hughes Rig Count, and at 1:15 we get Fed’s Kashkari and Bullard Speak at OMFIF Meeting in St. Louis. 3:30 brings the CFTC “Commitment of Traders” data. Throughout the session, we hear Credit-Card Charge-Offs: AXP, BAC, C, COF, DFS, JPM, SYF.
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