Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about this morning.
Good Morning! US Futures are lower, driven by a 25bp drop in Nasdaq which sees both AAPL (200dma break) and TWTR (approaching IPO price) breaking lower from yesterday’s smackdown. European markets are all under pressure, led by a 1.4% drop in Spain and Italy as headlines on a Catalan referendum weigh on investors. Every major sector in Germany is in the red, save Materials — in very light trading, and Athens is 1.4% lower as Greek Banks lost 30% for the 2nd day. Over in Asia, Shanghai leapt 3% and Shenzhen nearly 5% as authorities continue to crack down on day-trading and short-selling; Nikkei lost 15bp, Hang Seng was basically flat. Aussie added 35bp as the Miners bounced, and Sensex lost small as India’s Central Bank stands pat.
The US 10YY is up small, but Germany’s Bund Yields just dropped red, so anticipation US follows, and the US “policy-sensitive” 2-year yield up 1bp early. The US curve is slightly steeper, which may help Fins — but the DXY is breaking down under the weight of several crossed — Aussie is the standout, supported by hawkish Central Bank statements, and a pop in retail sales down under, while Euro is rebounding towards 1.10 and the Yen strengthens — even the Loonie is showing some life early. With the weaker $US, we have a tailwind for commodities, and Industrials are recovering — but metals are showing a “dead cat” bounce, with Copper up small off 6Y lows, and Gold basically unchanged despite the $US tailwind. The Oil complex is seeing a rebound from yesterday’s supply-headline induced pressure, with Brent and WTI gaining 1% into API inventories tonight.
Scheduled Catalysts today include Canadian Manufacturing PMI at 8:30, ISM New York at 9:45 and US Factory Orders at 10. Sometime during the session we will be getting ACT prelim truck orders, and after the close tonight we get API Inventory data alond with some marquee earnings (CERN / ETSY, G, RATE / MBI / DIS, DWA, LBTYA). In Washington today, the Senate in session, House on summer break — At 9:30 Senate Armed Services Cmte holds hearing on Iran deal (Foreign Relations Cmte does same at 10am), at 11am NSA Director Michael Rogers speaks at Defence Strategies Institute symposium on cybersecurity — and at 1pm Israeli Prime Minister Benjamin Netanyahu hosts webcast on Iran.