Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about at the start of the week:
Good Morning! US Futures are little changed, staging a nice 60bp rally from overnight lows as Oil rebounds. This is despite broad weakness across Europe, where Energy and materials stocks are among the biggest fallers, hitting the DAX for 50bp, while a retreat in the Italian Banking Sector sees Italy off nearly 1%. The FTSE is off only 30bp despite Anglo and BHP losing over 5% as Brexit fears recede, helping buoy London Equities. A relatively muted session as the Nikkei lost 80bp as the Yen popped after last week’s sharp weakness, but fins continued to rally on negative-loan hopes from BoJ — Shanghai lost 40bp in light trade, while Markets in Australia and New Zealand were closed for the Anzac Day public holiday.
Ahead of the Federal Reserve on Wednesday, with the Bank of Japan following on Thursday we are seeing a reversal of some of last week’s trades — Treasuries and Bunds have found a bid, despite JGB’s having their first three-day losing streak since early November, but US yields remain well above Friday’s lows. The DXY is retreating as Sterling hovers a near 6-week high and Euro rebounds despite German Ifo survey coming in weaker. While the weaker $ is helping Gold rebound 40bp, most other metals are in the red, but watch Silver — a break north for the white metal will be darn impressive after last week’s rally. The Oil complex is off 80bp early, weighed by traders taking profits after three weeks of gains and comments from fringe producers that they find prices in the $40’s acceptable.
Ahead of us today, we get New Home Sales for March at 10am, followed by Dallas Fed manufacturing Activity at 10:30. The US Treasury is auctioning off $26B in 2Ys at 1pm. This all in front of a busy week of Central Banks (FOMC, BOJ), CPI from Japan, Germany and Aussie, Regional FOMC Surveys, and Industrial Profits from China.