Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about before markets open on Tuesday.
Good Morning! US Futures are breaking lower as angst overseas coupled by weak #s from WMT. The S&P is off 30bp — and for the first time in a week not sharply outperforming DAX futures. Most European markets are in the red, led by a 30bp drop in the FTSE as miners weigh, and a 20bp drop in the DAX as Consumer Discretionary, Materials and Industrials all fall — but volumes remain quite light, with major bourses trading 30% light to normal trends. Over in Asia, Shanghai hit for 6%+ “despite apparent interventions by the PBOC” — There were 1,500 A-shares limit-down — Chatter PBOC spent $US19B in trying to support the market. This has Asian EM under pressure again — with Thailand off 2.5% (bombing), and Indonesia dropping 1.5%. Japan lost 30bp in quiet trade, while Aussie Central Bank Minutes helped the A$ hold, but their equities hit for 1%+ on drop in big Banks
The US 10YY is off very small, being rejected several times off yesterday’s 2.17% close — and while the Fed Fund Minutes are showing only a 44% chance of a September lift, that “Policy Sensitive” 2YY is climbing higher again. Despite EM Currencies INR, IDR, TRY, MYR, ZAR and THD mostly under pressure this AM on China’s slowing economic growth and the prospects for a US rate rise — The DXY is lower despite gaining against Euro, but losing ground against Yen and Pound Sterling (inflation #s). With the Higher Greenback, we have a headwind for commodities — and Most base metal prices are lower, with Copper off 1.7% to a fresh 6Y+ low. Gold is bucking the trend slightly, but the Oil complex remains under pressure ahead of Inventory data later today.
We get Housing Starts and Building Permits at 8:30 today, and coupled with HD will have the Builders active — Redbook weekly sales hits at 8:55, and at 11:30 U.S. to sell $US22b 1Y bills, 4W bills. Down in DC the Senate, House on August recess and President Obama on vacation in Martha’s Vineyard. Some street conferences today include Santander’s Brazil Conference, Enercom Oil & Gas and Raymond James Telecom Investment — all ahead of the API data for the Crude Complex at 4:30 tonight.