Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about this morning:
Good Morning! US futures are off slightly, led by a 20bp drop in Nasdaq as the micro weighs (SSYS off 20%). European equity markets are relatively quiet, nursing yesterday’s losses as we await US GDP and the FOMC today. Financials, which were hit sharply yesterday, have not shown any recovery whatsoever. Consumer Discretionary continues to outperform in Germany, but volumes overall are quite benign. There was a bout of Asian Weakness: Sharp burst of profit taking hit Indonesia, with Jakarta losing 2.6%; India now 10% from record highs; Aussie was hit for 2%, its worst session of 2015, Led by Fins as the A$ cools speculation the RBA cuts next week, and GS warns on their AAA status. Japan was closed for Holiday, and Shanghai closed flat. The Bank of Thailand unexpectedly cut rates, while Sweden stunned investors by holding firm
Greek stress continues to abate, driving heavy selling in the German Bunds — their 10YY has leapt 10bp in the overnight, almost doubling, and now yielding 14bp. This, coupled with heavy rate lock selling (ORCL yesterday) and light Asian buying (Holidays) has the US 10YY back over 2% in early trading. The Dollar continues to retreat ahead of the FOMC, hitting a 2month low and driving Euro back over 1.10 (Since Failed). Despite this tailwind, we have profit-taking in the metals, with Silver falling off 1%. The Oil complex is slightly red (API showed a build of 5.1M last night, double the street’s estimate), but relatively benign and spooking shorties ahead of DOE data. US GDP is released at 8:30, watch those builders into Pending Home Sales at 10. DOE data for Crude, Gasoline and Distillates hits at 10:30, and at 1 we get an auction of $US29B in 7Y notes. The FOMC statement is released at 2pm — there is no presser…..