Via Dave Lutz, head of ETFs at JonesTrading, here’s a super-quick guide to what traders are talking about right now:
Good Morning! The S&P is hanging near all-time highs as the Smallcaps pop 20bp early. The Euros are not in a good mood, as Banks stress tests has Italian Banks whacked for 4%. Unicredit Limit Down. EU Fins off 2.3% has Euro-Stoxx nearing off 1%. Germany acting better tho, basically flat as HC and Tech Rally. FTSE off 20bp as the miners are staging a rally — and volumes are actually trading a hair heavier than July’s average turnover. In Asia, Shanghai continues to stress about a fresh regulatory crackdown, coupled with fresh IPOs lost 90bp, but Aussie added 50bp, led by mining and energy stocks – Nikkei added 40bp into the cabinet meeting tonight to approve Abe’s stimulus — and EM Asian shares are hitting a 1Y high.
Havens are under pressure — Gold retreating from 3week highs, and Doves are selling the Treasuries as Dudley comments overnight has Fed Funds at 30% for December, down from a 50% chance of a hike. The DXY is bouncing from last week’s smackdown — as the Yen had initially retraced some of Friday’s Strength, but that $/Y is now falling close to unchanged. The Pound weaker as Bank of England is expected on Thursday to cut – Aussie $ is getting whacked into RBA tonight, while weaker Eurozone manufacturing PMI weighs on Euro. Commodities are mixed, with Industrial Metals supported by stronger Chinese PMI data, while Oil is down over 1% as Iraq Exports Jumped. Softs look weaker across the board.
Very light day on the calendar, with only Markit US Manufacturing PMI at 9:45, just ahead of the official ISM Manufacturing and Construction Spending prints at 10. The House and Senate in recess until Sept. 6, and I expect a sea of “Out of Office” responses from my blogging today…..