Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! Happy Fed Day! It’s rare u see QQQs off 1.1% (AAPL 11% weight, off 7%) while Russell rests near unch. Mixed Trade in Europe, where the DAX is climbing 30bp as Industrials and Energy lead higher — but those Fins are under pressure across the continent, weighing on Italy’s exchange. Focus was on Athens hit by 4% amid reports that it wants an EU summit to discuss the country’s bailout. In London, the FTSE is shrugging off Barclays jumping on #s to fall 30bp as the miners weigh. In Asia, the Crackdown on Commodity Speculation continued to weigh, with Shanghai losing 40bp – Sydney lost 60bp as deflationary headers whacked the Aussie $ and big banks – Nikkei lost 40bp ahead of the BOJ tonight — our Kauai desk notes “Expectations have grown for further easing and anything light will be disappointing” – Apple’s Asian suppliers were hit, dragging down stock markets in tech-heavy South Korea, Taiwan and Japan.
Treasuries reversing their 7day stretch of weakness into Janet later — with the 10YY testing 1.9% as Bunds retreat from 30bp. The DXY is weaker, losing ground to Euro as M3 rose slightly — Pound as Brexit Fears continue to subside, Yen as a reversal of recent weakness happens ahead of BOJ tonight. With the weaker $, we have a bid in metals, with Silver gaining 1.2% and Gold 30bp — this despite another whack in China, which saw Ore drop nearly 3% and Rebar 5%+. WTI hitting highest level since November into DoE later – up 2% as API showed a surprise draw of 1.1m, against expectations of a 2.4M rise (but heavier build than expected in Cushing). Gasoline is adding 1.2% and Natty Dread 1%. Softs are weak across the board.
Ahead of us today, we get Advance Goods Trade Balance at 8:30, ahead of the Pending Home Sales for March print at 10 and DoE data for Crude at 10:30 (API showed Draw 1.1M, but Cushing build of 1.8M). We get the FOMC Rate Decision at 2pm — there is no Presser. At 2:30 Spot Natty Contracts roll.