Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! US Futures are popping 60bp this AM, taking off like a shot around 4am when Italian banks shot higher on details of an investment fund to help local lenders shed bad loans and recapitalize. These headers have the DAX up 1.2% as the beaten up Financial sector sees heavy covering. Mining companies climbed to the top of the FTSE, pushing London up 1%. Volumes across the continent are a touch light, however, with most markets turnover running at 90% normal. In Asia, Shanghai rose nearly 2% on a moderation of PPI declines – China brokers were stronger after CSRC proposed new rules on broker capital, risk and liquidity – Japan’s machinery orders came in slightly better, but the Nikkei lost 40bp as the Yen hits a 17-month high, but Japan small cap Mothers index outperformed for 5th straight day. Hong Kong rose 40bp, while Aussie lost small as miner gains were offset by continued losses in the big banks.
With the G20 in Washington this week, all eyes are on Sovereign yields and the interventions in the FX market – Bund Yields are bouncing sharply from 1Y lows, helping drive Treasuries toward 1.75% in the 10Ys. The DXY is under slight pressure however, as the Yen rallies for a 7th day and Euro bounces from lows on the Italy headers. Most metals are acting well as Ore gains 3% in China to 2week peaks and Gold hits 3week highs, but still no bid to be found in Copper, which is losing 50bp and breaking downside 100dma. Oil is holding the bulk of Friday’s 6.6% surge despite Goldman warning on a Doha deal disappointment, while Natty is seeing a sharp reversal of last week’s rally, sending the benchmark down 3.5% early.
We have no Economic releases schedules today, but headlines will be generated from Treasury and fed officials — At 8:30, Treasury Sec Lew speaks on “U.S. leadership in the global economy” — at 9:25 Fed’s Dudley Speaks on Community Development in New York, while at 1 Fed’s Kaplan Speaks in Louisiana. At 3pm, Janet Yellen heads over to 1600 Pennsylvania to meet with Obama to discuss economy, Wall Street policy. At 4:30 tonight, Energy Sec. Ernest Moniz speaks on the Iranian Nuclear deal. All eyes are on the Kickoff of earnings season with AA tonight and the big US banks later this week.