Via Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good morning, US futures up small, “following 32 consecutive sessions in which the index hasn’t moved more than 1% in either direction,” WSJ noted. Mixed picture across the Atlantic, with EU exchanges trading higher, with the DAX up 50bp as banks and media are companies leading to upside in Europe. London is in the red tho – Miners dropping, led by a 4% drop in GLEN on #s, but FTSE based housing members keep rebounding. Fins have Italy trading up nearly 1% in good volume, while Turkey was hit for 2% on ISIS headers. Over in Asia, Japan gained 60bp on the falling Yen – Shanghai lost 40bp as PetroChina and Cnooc report sharp drops in profitability, and China insurers slipped as CIRC tightens restrictions on short/midterm insurance products — while Aussie was up small, as gains in the big banks and the miners were just enough to offset losses in a number of index heavyweights. The emerging market rally is finally taking a breather, with equities set for their first drop in seven weeks.
The US 10YY is hovering around yesterday’s peaks, as Bunds finally see some relief from the heavy buying, and UK Gilts retreat from yesterday’s BOE bond-buying operation. The dollar continued to claw back last week’s losses, With Euro and Sterling under pressure, while the South Africa Rand drops to August low on finance minister reports. $/Y remains in focus, and hovering around unch as peeps eyeball the 100 level. Ore lost small in China, and we have Copper and Silver both off 50bp early — while Gold is down 40bp on the Greenback’s rally. Oil is getting hit for 1.7% as a heavier-than expected inventory build hit last night, while Natty continues to outperform, gaining 40bp early.
Ahead of us today, we get the FHFA House Price Index at 9 – Bank of England Bond-Buying Operation Results at 9:50 — then attention retrenches on the homebuilders with Existing Home Sales for July at 10. DOE data for Crude, Gasoline and Distillates at 10:30 — Last night’s API showed a build of 4.5 million barrels (450k in Cushing, Genscape wanted a 180k draw), while the street was anticipating a 450k draw — but a big Gasoline draw of 2.17mm is helping that commodity outperform. At 11:30, the US Treasury auctions $13B in 2-Year Floaters, just ahead of the $34B 5Y Auction at 1.