What are traders chatting about this morning? A rally in Europe and Asia ...

Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about this morning.

Good Morning! US Futures are mixed, with NDX up 20bp but Russell lagging a bit. Keep an eye on the US Transports today — have been breaking down under the 200dma, but TNTE/FDX and GM headlines will have the space active today. European markets are playing catch-up after their 4day Holiday, with EuroStoxx up 1.3% led by a sharp rebound in Energy and Utilities — While the DAX has added 1% on materials and tech in slightly heavy trading — Consumer Discretionary only space I see in the red. Greek stress continues abating – Greek Yields are tighter and Athens’ banks are bouncing as it seems they make the IMF payment. Over in Asia, India’s Sensex lost ground after the central bank kept interest rates at 7.5% and Aussie’s currency is surging after the central bank surprised traders by leaving borrowing costs unchanged. Shanghai Composite rose 2.5% to its best level since March 2008 as doves soar on stimulus hopes — while Japan gained 1.2% as the Yen dropped sharply.

The US 10YY remains higher and remains just below NFP levels, while a sharp bid for Bunds reversed on better EU PPI data. The DXY is higher, making gains against Euro (under 1.09) and Yen (Tested 120 overnight) — causing a headwind for commodities. Gold is retreating from 7week highs, while Silver is getting hit for 1.5%. Despite the Aussie hold — Copper is jumping 70bp — the red metal lost its bid throughout y’days trade. The Oil complex is giving back some of yesterday’s gains, with WTI off 1% into tonight’s API Inventory data – Supplies probably rose by 3 million barrels – Genscape forecasting a very small 169K build in Cushing. Scheduled Catalysts are very light today — Fed’s Kocherlakota speaks in Bismarck, N.D. at 8:50 this AM – at 10 we get JOLTS Job Openings; at 12 we get the DOE’s Short Term Energy Outlook. There is a $US24B 3Y auction at 1, and we get Consumer Credit at 3. Tonight after the bell, API data for Crude, Gasoline and Distillates

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