Via Dave Lutz at JonesTrading, here’s what traders are talking about at the start of a busy week for the economy.
Good Morning from Annapolis! US Equity futures are all in the green, led by a 25bp pop in the Industrial Minis. While UK Homebuilders are under pressure (election headlines), the FTSE is up 40bp – European markets have caught fire in the last 30minutes, as headlines intensify Yanis Varoufakis has been sidelined by Tsipras, and Germany’s Bild reporting the Greeks have revised their reform list. The DAX is up 90bp, with only the Fins in the red (DB #s), while discretionary names are leaping by over 2% in heavy volume. Over in Asia, China stocks jumped to fresh seven-year highs on expectations that Beijing will accelerate mergers among state-owned enterprises, while a Pop in Ore prices benefited the Miners, helping Aussie close at 7Y highs. On the flip side, Fitch Downgrades Japan (Nikkei off small), while India was hit for 1%, and now red on the year.
The US 10YY is basically flat, holding onto last week’s meager gains (felt bigger than 3bp), but focus is shifting towards inflation expectations rebounding on Oil’s recent reversal higher. The DXY is up small, forming a double-bottom near 86.80. Metals are shrugging off this headwind, with Silver and Gold up near 1% – and the Oil complex is rebounding from earlier losses towards unchanged. The Soft to watch may be Soybeans today — as Chipotle officially bans GMO food. Ahead of us today, we have ECB’s Constancio Speaks at Conference at 8, U.S. Treasury Sec Lew among speakers at a conference at 8:30 — Markit US Composite PMI at 9:45 along with the ECB’s announcement of asset purchases. Dallas Fed hits at 10:30 — and the US Treasury is auctioning off $US26B in 2Y notes at 1. This week brings us the BOJ and Fed decisions; US and Canadian GDP; Global manufacturing Surveys; Milken Institute Global Conference; Japan, Germany, France and Italy see closures for Holiday — and a pile of the Micro….