Dave Lutz of JonesTrading has the top topics about which traders are talking today:
Yesterday’s NYSE volume was the lightest (Non-Holiday) volume since October 2006, let’s hope that reverses – US Futures have been steadily climbing throughout the AM, and rest about 15bp higher ahead of the Poroshenko-Putin meeting (no specific time). The UK is playing catch up from Holiday, gaining 30bp, while the DAX is slightly red in very light volume (35% below 20day averages) as Chatter increases that Russian military vehicles again have entered Ukraine. Over in Asia, the Nikkei lost 60bp as the Yen strengthened overnight — China was hit for 1% as $US5B in new shares start trading this week — Aussie closed unch, despite weakness in the miners as Ore in Asia dropped 1%, hitting lowest level in 2months.
Global Sovs are in demand again, with the US 10YY off small, but sharp demand for credit in Europe — Bund Yields remain near record lows, and we have 2YY negative in 5 EZ countries: Germany, Netherlands, Belgium, Austria, and Finland. The DXY is retreating from near 1Y highs — losing ground against Yen and Euro — Causing a tailwind for commodities. Industrial Metals are being sold for Precious, with Gold popping 70bp and over the 200dma. We are seeing a “dead cat” bounce in the Oil complex, with both Brent and WTI up slightly into API inventories tonight. Scheduled Catalysts today include Durable Goods Orders (forecast to show an impressive uptick) at 8:30, FHFA house prices and Case-Shiller at 9; At 10 we get Consumer Confidence and Richmond Fed; at 11 the week’s largest POMO; at 1 we have a 2Y note auction — then API inventories after the close.
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