Via Dave Lutz at JonesTrading, here’s a super-quick guide to what traders are talking about right now:
Good Morning! BOE Surprises markets by NOT cutting — They meet again in 3weeks, and some noted “At that point, they will have data on economic conditions post-Brexit” — US futures are retreating from overnight highs on the header, but remain higher as Solid Earnings reports continuing to roll — YUM last night and JPM this AM — and reports surface about Bernanke floating “perpetual Debt” to the BOJ. EU markets remain in the green across the board, with the DAX up 1% as European banks are strong, led by a 4% pop in Italian Lenders — While the FTSE climbs 90bp despite the surge higher in the Pound. Volumes are completely abysmal tho, with most exchanges 30-40% light to trends. Over in Asia, Nikkei on a four day winning streak, closing up 1% – Shanghai lost Small – Ausssie climbs for a 6th day, gaining 40bp as the big banks rallied — while the Singapore Exchange closed early due to technical issues.
Havens are under pressure — Bunds and Treasuries seeing higher yields, while Gold is getting whacked. Eyes are on the British Pound, which is surging higher on the surprise decision from the Carney. The Strong Jobs # propelled the Aussie$ – while Euro is making headway against the Greenback as the DXY takes out yesterday’s lows. Eyes on the Yen, which weakened near $/Y 106 on further reports of heavy stimulus coming. Metals are generally weaker, Ore flat in China after jumping 6.5% this week — while Copper trades near unch. Gold is getting hit for 1% despite the falling Dollar. Energy is mixed, with WTI trying to claw back some of yesterday’s losses — while Natty gains small ahead of inventory data later today. Softs are jumping, led by Grains on hot weather in the heartland — While Cotton adds to its recent 12%+ surge.
Ahead of us today, we have the Biggest Tech IPO of the year (LN). At 8:30 we get Weekly Jobless Claims along with US PPI. At 10:30 we get that Natty Gas Inventory data. Attention turns to heavy Fedspeak, with 3 Governors scheduled to chatter —> Fed’s Lockhart Speaks on Economy in Idaho at 11:15, Fed’s George Speaks on U.S. Economy in Oklahoma City at 1:15, while Fed’s Kaplan Speaks in St. Louis at 7pm tonight.