Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! US Futures are rebounding from yesterday’s selloff, with the S&P up 20bp but well off the highs of the overnight. We have a mixed picture in Europe, as the DAX can’t hold a bid, losing 30bp as weakness in technology and consumer-focused shares weigh, but much of the periphery is bid as Italian banks try to hold a rally on a meeting of the government and bank chief executives — Bank across the continent are showing a very tentative bid right now, and are well off their session peaks. Big Pharma leading gains on FTSE, but the Miners are under some pressure in London as base metals flounder. Over in Asia, Shanghai rallied towards unchanged as the Chinese services sector expanded at the second highest rate in eight months – Aussie climbed 45bp, thanks to a rebound in energy stocks and the big miners — while Japan lost small, extending the losing streak to 7 sessions.
The US 10YY is higher, climbing 2bp but rejected from the 1.75% level early with focus on the FOMC Minutes at 2pm today. German Bunds are finally seeing some selling pressure, with their yields up a few bp to 12bp. The $ is climbing from 17month lows, mostly against Euro — but that Yen continues to see strength, with the $/Y drifting close to that 110 level. With the stronger $, Copper remains near a one-month lows, but Gold is off only small. Oil is climbing as API showed a surprise draw, OPEC headers give hope to a freeze, and China data supports demand — with WTI gaining nearly 3% early. Natty is off 1% despite frost in the north-east, while Softs look weak across the board.
Quiet morning of Catalysts, with only DoE data for Crude expected at 10:30 (Estimates were for a 3.2mln Build, but API last night showed a 4.3M draw. At 12:20, Fed’s Mester Speaks in Cleveland, just ahead of the release of the Minutes from March 15-16 FOMC Meeting at 2pm. Tonight, Fed’s Kaplan Speaks in Dallas at 8pm.