Via Dave Lutz at JonesTrading, here’s what traders are talking about on the first trading day of the month.
Good Morning! US Futures are mixed right now, with the Industrials trying to rebound, while Nasdaq and Russell rest just iun the red. Sharp lagging of whats going on overseas, as Germany’s DAX is up 90bp as Industrials and Fins rally 1%+. Despite a summer Monday, Volumes are average despite the Greek market dropping 23% as exchange re-opens and Banks collapse (NBG and Piraeus off 30% limit). The Consumer Discretionary shares are seeing some weakness in Europe, Tech remains weaker, and the Autos are off slightly into Monthly #s reported later today. Over in Asia, Shanghai lost 1.1%, bouncing off the 200dma as China PMI showed a collapse in new orders. Shenzhen dropped almost 3% – Nikkei lost 20bp in quiet action, Kospi off 1% as tech and China weight, while the Sensex bucking the red in Asia into India rate decision tonight. Aussie was hit for 40bp as falling metals weighed on Miners.
The US 10YY and German 10YYs are flat, drifting around the closes on Friday. The Euro is weaker despite Eurozone’s PMI slightly better — while the Yen softer as Japan’s PMI comes in lighter. Commodity Currencies are getting whacked against the Greenback, with the getting smashed for 1.5%, Loonie getting hit on elections being called, and Aussie hit on falling Commodities and China slowdown. The Stronger $US is a headwind for commodities, and the Metals complex is dropping quick. Copper is following Nickel, Led and Platinum lower, while Gold failed again overnight to retake $US1100. The Oil complex is under sharp pressure, with Brent off 2% and nearing January lows as OPEC output +chatter continues, while the Rising Rig Count is hitting WTI for 1.5%. All the grains are weaker, with Wheat and corn falling 1%+
While we get the Auto data throughout the session, scheduled catalysts include U.S. Personal Income & Spending and PCE at 8:30; Fed’s Powell to Take Part in Brookings Panel on Market Structure at 9; Markit US Manufacturing PMI at 9:45, and Construction Spending and ISM Manufacturing at 10. In Washington, Senate in session, House on Aug. break – President Obama delivers remarks at clean power plan event at 2:15, and at 5pm Senate Foreign Relations Committee holds closed hearing on Iran deal verification and assessment report. Canadian equity markets are closed for Civic public holiday today.