Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! US Futures are marked slightly higher, trying to add to recent highs. The S&P is marked up small, but eyes remain on Nasdaq which has been a recent lagger — but marked higher despite INTC getting hit for a few per cent this AM. Over in Europe, Most markets are slightly higher, with DAX climbing 10bp as rallies in Fins and Discretionary are offset by losses in Tech shares. The FTSE is lagging, losing 30bp as Staples and HC weigh down London. Volumes across the continent are pacing better than average, with most exchanges showing 25%+ heavier turnover. This is shrugging off weakness in Asia, which saw Shanghai hit for 2.3%, breaking 3000 in the biggest fall in nearly 2mos — Smallcap ChiNext whacked for 5%+ – TMT companies led the decline — No Specific reason. Nikkei had a small 20bp bounce after Kuroda suggested buying more ETFs, while Aussie climbed 50bp as resource stocks continued their rally.
Overnight, 10Y JGBs fell to a record low yield, Dragging Bunds and Treasuries along, but US 10YY popping back toward unch as more US traders man their terminals. The DXY is little changed, torn between losses against Euro ahead of the ECB tomorrow — while commodity currencies are catching a bid, led by Aussie as Ore was limit up 6% in China as BHP slashed production forecasts. This has a bid under other metals, with Silver adding 60bp to yesterday’s breakout. Dragging gold back towards unch. Oil Complex is under some pressure, as Kuwaiti oil workers ended a three-day strike, coupled with build in API has WTI off 2% this AM into DoE data later. Softs are mixed, with Grains showing some life early.
Ahead of us today, we get Existing Home Sales for March at 10am, DOE data for Crude at 10:30 (Last night API showed a build of 3.1M vs. 3mln expected. Cushing Draw smaller than expected at -230k. Down in Washington, Senate meets at 9:30am, scheduled vote on S. 2012 energy bill, while the House meets at 10am to consider two IRS-related bills. Headlines say The US Navy and its contractors are getting an early boost as the House Armed Services Committee starts writing its 2017 defence authorization bill this afternoon. We get NEM, the #2 weight in the GDX, after the close today along w/ AXP.