Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning, and Happy ECB Thursday! We get Mario’s statement at 7:45, followed by a presser at 8:30. Ahead of that, US Futures are adding small to Yesterday’s gains as Oil continues to hover over $44 as the new contract gets trading. Caution in Europe seems the theme, however, with the DAX trading off 30bp in decent volume as Fins, Industrials, Tech and telecom all retreat. FTSE is dropping 50bp with Staples and Industrials getting clubbed. Over in Asia, Shanghai closed 60bp lower, led by drops in Fins and Manufacturing – Hang Seng shrugged that off, jumping 1.5% despite a whack in Macau names on Sands results – Japan ripped higher, gaining 2.7% a the Yen continued to break lower and stimulus hopes ramped ahead of next week’s BOJ – Mothers +3.4% again outperforms as the rotation into small/caps continue, while Sydney popped 1.1% as the Miners continued their upward mojo.
Bunds and Treasuries continue to see selling, with the US 10YY breaking upside yesterday’s peaks — While Indonesia and Sweden’s central banks kept interest rates unchanged as widely expected, Sweden’s Krona has gone Honeybadger, leaping higher despite an expansion of QE from their Central Bank. The DXY is retreating slightly, as Euro gains some upward momo and the Yen reverses some recent weakness. Commodities open today in full “ripper” formation tho, with Ore trading limit up in Dalian to a 10month high, Silver flying another 1.3% dragging Copper and Gold along — and WTI trading flat above $44 as International Energy Agency comments on non-OPEC production drops continue the bullish fever. Even Grains continue to squeeze, With Soybeans jumping over 2% – bringing 1week gains close to 9% as the “squeeze is on.”
Ahead of us today, we get the ECB Rate Decision at 7:45, followed by the Draghi Presser at 8:30, right when US Weekly Jobless Claims, Chicago Fed and Philadelphia Fed Surveys hit. At 9 we get FHFA House Price Index, followed by the US Leading Index and EU Consumer Confidence at 10. Natty Gas Inventory data hits at 10:30, and at 1pm the US treasury is Auctioning off $16B in 5Y TIPs.