Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about as stocks continue to rebound on Thursday morning.
Morning! Rebound continues with S&P and Naz futures up 1% and both have regained losses for the week with both E-Mins and NQ above recent resistance points (1940/4200) as yesterday’s Dudley/Gamma induced buying continues. Euro markets are playing catch-up with America’s surge, with the DAX up 2.5% and EuroStoxx gaining 2.75% – but volumes across the continent appear to be abysmal (Frankfurt 40% light). Every sector is well bid, led by a 4% move in Energy and 3% surge in Technology. Over in Asia, Shanghai added 5.3% – breaking the steepest five-day rout since 1996. Industrial and health-care companies led gains thanks to a late rally driven by PBOC intervention. Hang Seng +3.6% led by Energy names following earnings, and Japan added 1.1%, while Aussie added 1.2%. Even EM is in rally mode, with the FTSE Emerging equity index up over 3%.
The US 10YY is retreating slightly, but remains above 2.15% as chatter intensifies of Asian Central bank selling of Treasuries ahead of Jackson Hole today. Fed Funds are slightly more hawkish, showing a 26% chance of a September lift — while that “Policy Sensitive” 2YY continues to act like a September Launch is on the table, gaining another bp to rest at 1week+ highs. The DXY is making gains as investors short Euro and Yen (on the back of Kuroda Speech overnight) — but important to see Asia-Pacific currencies that have been hit hard in the recent turmoil, like the South Korean won and Malaysian ringgit, are in rally mode. Huge reflation in the commodity complex overnight, with industrials like Copper and Silver up 1%+, but massive short-covering in the Crude complex has pushed WTI 4% higher early. Grains all have a bid, and Gold consolidates below $US1130 ahead of US Q2 GDP.
At 8:30, we get that GDP for Q2, along with Weekly Jobless Claims. 10am brings Pending Home Sales, and Energy gurus will focus on the Natty Inventory data at 10:30. We get Kansas City Fed Manufacturing at 11am, and then all eyes are on results from the US Treasury’s $US29B 7Y Note sale at 1pm. Kansas City Fed kicks off their annual economic symposium in Jackson Hole, Wyoming — but only FOMC speaker scheduled right now is VC Fish on Saturday. In US Politics, Senate, House on summer break still (must be nice) — President Obama travels to New Orleans for Hurricane Katrina’s 10th anniversary…
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