Via Dave Lutz at JonesTrading, here’s a quick overview of what traders are saying before markets open on Thursday.
Good Morning! US Futures are starting mixed this AM, as attention is on the myriad of earnings reports rolling across terminals. Nasdaq continues to try and rebound, with AAPL trying to build on yesterday’s gains despite trading ex-divvy today. European markets are mixed, and FTSE sliding off after the “Super Thursday” reports from BoE that were hawkish as expected. The DAX is trading unchanged, With Consumer and Financials both higher — while Oil Companies under pressure, led by BP and Tullow — and weak #s weighed on Deutsche Post and Zurich Insurance. Athens rising 3%+ as National bank of Greece saw massive buying, but overall volumes across the continent seem muted into the US Employment report tomorrow. Over in Asia, aside from small rallies in Japan and India — it was a sea of red. China lost 80bp and Aussie lost 1.1% despite a bounce in Miners (Rio#s) after ANZ Banking announced a capital raise. Many of the “Emerging Asian” markets like Thailand, Malaysia and Indonesia are all under pressure as the street positions for a September lift.
The US 10YY is seeing some slight weakness as a strong bid surfaces for Germany’ bunds following Solid demand at French Auction and strong German June orders. That “Policy Sensitive” US2YY rests just off 4Y highs this AM, while Fed fund futures price in a 48% chance of Janet hiking next month, down slightly from 50%+ yesterday. The Dollar basket is in the green tho, making gains against Ausse and Euro — leaving the DXY closing in on a 12+Y high. This is a headwind for commodities, but we are seeing a slight bounce in metals with copper up 20bp, but Gold and silver flat. The Oil complex remains for sale, with WTI off 1% and closing in on those March Lows. We have a nice cover in Wheat this AM, but most of the “softs” are mixed.
Scheduled Catalysts today include Challenger Job Cuts at 7:30, ahead of the Weekly Jobless Claims at 8:30 and Freddie Mac mortgage rates at 10. Natty gas Inventory data at 10:30 rounds out what’s expected today. Down in Washington, Senate, House on summer break, but the FCC meets to devise rules for airwaves auction expected next year. Fox holds first Republican presidential debate in Cleveland at 9pm.