Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about on Monday:
Good Morning! Global stocks are at 2016 highs as geopolitical angst keeps the doves singing, M&A (Softbank for ARM) ramps, and BAC is bid up small following earnings. US Futures are climbing 20bp as $$$ flushes from Treasuries, despite weakness across Europe. The DAX is off 10bp as Travel stocks hit on Turkey and Nice, while Financials drop 50bp. London is acting better despite Miners getting hit, as the weak sterling has M&A targets bid up on ARM headers — but volumes are terrible across the continent, with most exchanges trading 40% light to trends. Turkey Stocks are off 5% while the Lira rebounds from Friday’s 5% smack. In Asia, Aussie climbed 50bp to a 11month high – Shanghai fell 40bp as Homebuilders fell on data, while Tokyo was closed for Marine Day. EM Asia closed higher in light turnover.
Havens under pressure, with Gold falling nearly 1% and US 10YY climbing towards Friday’s peak of 1.6% despite German Bund Yields falling back below 0% in the overnight. The DXY on Friday’s peaks as EM Currencies retreat – Weak inflation data hits the Kiwi$, and Yen continues to break lower. Metals are all weaker as Ore drops by Limit in China, losing over 6% – hitting Silver for 1.6% and Copper for 1%. WTI is off 60bp as Turkey unrest not buoying the Oil complex – Istanbul’s Bosphorus Strait, which handles about 3% of global oil shipments, reopened on Saturday after being shut for several hours on Friday. Natty gas is bid higher as a heat wave grips the USA this week — while Softs are all mixed early.
Ahead of us today, we get the NAHB Housing Market Index at 10 — IMF’s Lagarde speaks at 12 — at 2pm we get the EIA monthly drilling productivity report — and at 4pm the US Treasury releases Total Net TIC Flows. Earnings after the bell are tech-heavy, with EMC, IBM, NFLX, VMW, YHOO expected — In Washington Politics, the Republican convention opens in Cleveland at 1pm — while the House and Senate are in recess until Sept. 6.
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