Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! Global stocks are challenging their highs for the year as Chinese exports expanded for the first time in nine months and JPM jumps 2.5% on #s. S&P Futures are adding 60bp, while smallcap Russell is up nearly 80bp. Nothing but a sea of Green coming from Europe, as the DAX leaps 2.2% with the Miners ripping higher in Europe and London, while Italian bank stocks are on Fire — Taking Italy’s equity market up nearly 4% and rallying fins across the Continent. London is up “only” 1.4% as the sharp rip higher in Materials and Fins is offset but tepid moves in the Consumer sector. Volumes are quite heavy on this upward move, with many exchanges trading 40% above recent trends. Over in Asia, Shanghai jumped 1.4% as Chinese exports surge, but the biggest upside mover was Tokyo, where the Nikkei broke 2.8% higher as the Yen went sharply lower – Aussie jumped 1.6% higher as China news had materials stocks rallying, and there was nothing but green across the Emerging Markets.
The US 10YY is higher for the 4th session in a row, breaking towards 1.8% in the overnight as global angst reverses course. Eyes remain in the Forex market, where the DXY is bouncing from 8m lows — making sharp gains against both Yen and Euro — while Sterling is little changed as “brexit” fears continue to haunt London’s currency. The Stronger $ is a headwind for commodities, but Industrial metals are higher as Dalian iron ore futures rallied to their limit and closed nearly 5% higher for 2nd day in a row — boosting Copper 50bp. Gold is retreating from 3week peaks, losing 1.3%, dragging Silver into the rabbit hole with it. Energy complex is mixed, with Natty breaking 2% higher, but WTI is retreating 1.7% on the Heavy Inventory Build (6mil v. 1mil expected) reported from API — but remains well above the 200dma as a huge draw from Cushing (-1.9m, 800k expected) and Brent in increasing backwardation helps cushion the selloff.
Ahead of us today, we get Advance Retail Sales for March and US PPI at 8:30. The Bank of Canada Rate Decision is at 10 (No change expected), right when US Business Inventories hit. The DOE data for Crude, Gasoline and Distillates posts at 10:30. At 1pm, the US treasury is auctioning off $20B in a 10Y note reopening, just ahead of the 2pm release of the Fed’s Beige Book setup for the next FOMC meeting. About 20Miles West of Annapolis, the House is to begin markup of Puerto Rico legislation — The SEC meets at 10 to discuss Regulation S-K disclosure requirements and business conduct standards for security-based swap dealers, and this afternoon Treasury Sec. Lew meets with PBoC Governor Zhou Xiochuan.