Dave Lutz of Stifle, Nicolaus has the top topics about which traders are chatting today:
Good Morning! US Futures are under pressure, sliding consistently lower as more US traders man their terminals — Unlike yesterday, which saw Nasdaq sharply underperforming pre-market, the S&P is off 20bp — while NDX futures are only slightly lower, but well below the 100dma. Watching the Internet bloodbath — overseas Tencent rebounded 2% (Buyback Impact), Naver popped 50bp after being down over 2.5%. We are seeing sharp weakness in the EU Fins, with that index off 2.5% to start the day — driving DAX futures off 1% – Unlike the previous sessions, volumes are quite heavy in Europe, with the EuroStoxx trading 50% above 20day averages, FTSE and DAX trading 20% above. Rhetoric is worsening in Ukraine, which could be a driver — and Russian Equities are solidly in the red again. Emerging Markets continue to find favour — with the EEM bearing down on a 4M high this AM as the yield plunge in developed markets drives flows towards EM. Over in Asia, The Nikkei lost 1% as the Yen surged due to the BOJ holding pat, disspointing those who wanted additional easing to offset the recent tax hike. The Shanghai jumps 2% after being closed yesterday, and Aussie closed relatively flat as the Miners found favour yet again.
The 10YY in the USA is unchanged, and remains under the 200dma and the 2.7% level as flows from equities find a home in Credit. The Yield Curve in the US continues to flatten, showing lowering economic expectations, and a big headwind for the Fins. The € remains well bid over the $US, as does the Yen, pressing the DXY toward 3 week lows — a tailwind for commodities. Precious metals are having a good day as angst builds with Russia, popping Gold up 1% thru $US1300/oz again. The Energy complex is well bid, as we await Libyan resolution and US Inventory data from API tonight. We have a active catalyst calendar today, starting with NFIB Small Business Optimism at 7:30, JOLTs Job Openings at 10, a Brazil Bond Auction and the week’s smallest POMO at 11, a $US30B 3Y note sale at 1, Brazil Bond Auction speaks at 1:30, Fed’s Plosser Speaks on Bank Regulation at 2:45, and at 4 we have a Fed Board Open Meeting on Rulemakings on Leverage Ratios.
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