From Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US futures rebounding 20bp from one of the lightest sessions of 2016, as More M&A (MWW, William Hill) offsets a sea of fresh offerings (BMRN, X among others). It’s a sea of green in Europe, with the DAX recouping 20% from the 2016 Lows, adding 75bp as those Banks continue to rally, with the SX7P adding 80bp, and those Italian Banks jumping another 1% early. Every sector in the Stoxx is higher, but volumes are abysmal, with most exchanges trading 30% light to recent summer averages. In London, the FTSE just off 14month highs as Industrials and Staples outperform. It was a Strong overnight in Asia, as Chinese Deflation pressure waned – Nikkei leapt 70bp on weaker Yen – Hong Kong lost small – Shanghai added 70bp, while Aussie led by the Fins again on ANZ #s, gaining 30bp. Most EM markets closed mixed as they grappled with the surging greenback.
The US 10YY is off small, as a stronger than expected JGB auction drove their yields lower. German Bunds are unchanged tho, as the periphery continues to rally, led by a drop in those Spanish Yields again. The DXY is basically unchanged, still losing ground to the Yen and Aussie $ – but Euro weaker and the Pound weakest in a month – back below $1.30. Ore was off small in China, but remains near 1 1/2year highs — and we r seeing some profit-taking in industrial commods, with Copper off 50bp and Silver dropping 40bp. Oil Complex continues to rally from yesterday’s OPEC headers, and too many are short the complex and scrambling to cover into Inventory data later today. Natty Gas continues to confound the long crowd, diving nearly another 2% and extending the longest losing streak since February as cooler mornings greet traders in the northeast. Softs are all weaker across the board.
At 8:30 today, we get US Nonfarm Productivity, just before the 10am release of the UK’s NIESR GDP Estimate and US Wholesale Trade Sales. At Noon, Energy players will be looking for the EIA monthly short-term energy outlook, and at 1pm the US Treasury auctions off $24B in 3Y notes. After the close today, we get Short Interest Data from the exchanges, DIS Earnings, and at 4:30 the API data for Crude, U.S. Crude Supplies Seen Falling 1.75M Bbl in Bloomberg Survey – Cushing crude supplies -150k, but Genscape seeing a build 150k.