Via Dave Lutz, head of ETFs at JonesTrading, here’s a super-quick guide to what traders are talking about right now:
Good Morning! Spoos adding to worst loss in a month, losing 20bp and firmly below the 2060 support we have seen over the last 3 weeks as Asian markets get whacked on the upward mojo of the Yen. Euro Markets are mixed to red, with the DAX unchanged as the EU Banks rebound 1% with HSBC popping on buyback plans, while ING and SocGen are jumping on #s. Eyes remain on the Italian Banks, as they climb 1% but remain well off overnight highs. London is losing some ground as the “Bond Proxies” get hit, knocking the FTSE for 30bp to multi-week lows. Turnover is mixed, with the Continent trading about 10-20% better, while London trade is down 25% from normal levels. Asia stocks biggest drop in more than a month as Fins got hit – Nikkei lost nearly 2% as peeps were disappointed in Abe’s latest stimulus – Aussie lost 1.4% as the Big Banks got clubbed, while Shanghai lost 30bp. EM Asia all closes in the red.
10Y JGBs remains near week’s lows, with their yields down small in the overnight — German and US yields are down 1-2bp early. The DXY is higher, climbing from 5week lows as Euro drops despite a Stronger PMI print, while $/Y rebounding from below 101, while the Pound is basically unch into BOE tomorrow as UK business activity suffers ‘biggest ever’ fall. Commodities are mixed, with Metals all dropping as Ore was off small in China — with Copper, Zinc and Silver are all down 50bp+ but Gold unch near a 3week highs. Energy commodities are mixed, with Oil bouncing from lows, but remains downside $40 as Gasoline weighs on the complex due to inventory data. Softs are all marginally higher.
Employment week kicks off in earnest with ADP Employment at 8:30, right when the Treasury posts their quarterly refunding announcement. At 9:45 we get the Markit US Services PMI, just ahead of the “Official” ISM print at 10. The Online Help Wanted Index hits at 10 as well, then attention turns to DOE data for Crude — Last night API showed U.S. crude supplies decreased 1.3 million barrels in the week (street looking for -900k) – Gasoline stocks decreased 450,000 barrels (-300k estimate), while distillate stocks expanded by 539,000 (-100k estimate). Quiet down in DC as the House and Senate remain in recess.