Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures are starting this Jobs week under some pressure, losing 40bp but well off overnight lows. Angst is twofold this morning from across the Atlantic, where UK’s Standard Life stopped retail investors from pulling out of one of the largest UK property funds — hitting property and financial stocks in London — while angst over Italian Banks weighs in Europe, with Monte dei Paschi getting smashed and knocking EU Fins off 1%. The DAX is down 1.5% as every sector retreats, while the FTSE is actually up 40bp as the Pound hits 31year lows boosting their exporters and BoE’s Carney moves to assure liquidity. Over in Asia, Shanghai gained small as more chatter increased on SOE reform, Nikkei dropped 70bp, snapping a 6session winning streak as the Yen gathered upward mojo, and Aussie lost 1% as banks suffered. Every EM Asian market closed in the red today.
Havens are on fire early. US 10YY smashes below all-time lows, German Bunds yielding -16bp. Gold up 60bp as the Swiss 50-year bond yield falls below zero for first time ever. We have the Yen jumping hard, as the “Carry Trade” of $/Y smells a 100 test. Aussie is weaker as the RBA stays unchanged, while there is some angst about the yuan/dollar reference rate at a fresh 5-1/2-year low. This has Precious well bid – Silver jumped 8% yesterday. It has gained 28% since June 1. It’s up another 1% this AM, while Gold is trying to get upside $1350/oz. Industrial commodities are all under pressure tho, with Copper down 1% and WTI getting hit for 2.5% as Nigerian Production comes back online. Natty Gas is reversing some of last week’s squeeze, dropping 3% early.
Ahead of us today, we get ACT Prelim Truck Orders — at 9:45 we get ISM New York, at 10 Jobs week data kicks off with Online Help Wanted Index. We also get Durable Goods and Factory Orders at 10 as well. At 2:30, Fed’s Dudley (Dove, Voter) Speaks — while after the close we get API data for Crude, Gasoline and Distillates. Down in Washington, the House meets at 12pm; has scheduled debate and votes on 16 bills — while the Senate returns Wednesday.