Via Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what tradders are talking about right now:
Good Morning! US Futures are under some pressure, with Nasdaq lagging as AAPL whacked on headers, while staples weaker on HSY. Seems a sea of green across Europe tho, with Banks, technology shares and automakers leading in Europe, but drops in commodity shares are mitigating the rally slightly. The DAX is up 1% as Tech and banks climb nearly 2% – helping Italy jump 1.3%. FTSE is flat as they return from Holiday, as the Miners drop 2% offsetting a pop in those Banks. Volumes are light, with most exchanges trading 20-30% light to trends. Quiet overnight in Asia, where Aussie gained 20bp – Nikkei lost 10bp, and Shanghai rose 20bp. India managed to close at a 52week high, while the MSCI Emerging Markets Index is rebounding from a 3week low.
Fed Vice Chair Fischer just wrapped his Bloomie interview, and his comments that “Negative rates are working” has a decent bid under Treasuries early — but all focus is on the Jobs report Friday as Fed Funds show a 36% chance of a September Hike. The DXY hovers near yesterday’s highs, as Eurozone economic sentiment sinks to five month low hitting the Euro, while Yen continues to break down on constant BOJ jawboning. Ore drops almost 1% to 7week lows in China, and we have weakness across all the metals, led by a 40bp drop in Gold on the stronger greenback. The Energy complex is trying to bounce, with Natty and Crude up 50bp as a Gulf of Mexico storm continues to shut production in the Gulf. Softs are all trying to rebound, with Wheat climbing slightly from 10Y+ lows.
Ahead of us today, we get S&P Case Shiller on Housing at 9am. At 9:50, we get the Bank of England Bond-Buying Operation Results — at 10am we get the US Consumer Confidence Index. Throughout the session, we could see volatility in AG names, as the Farm Progress Show in Des Moines, Iowa kicks off, while Tech will be looking for headers from the JefCo conference. After the close tonight, we get API data for Crude at 4:30 – Crude Supplies Seen Rising 1.5M Bbl in Bloomberg Survey, while focus remains on Gasoline Stockpiles — expected to drop 1.25mm.