Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! Nasty out there early. Havens on fire, with Gold at Yesterday’s highs and US 10YY below 1.33%. US futures are skittering along the floor, with the Minis down 50bp after failing to hold the 50dma. Over in Europe, DAX off 1.7% after a 9400 break sets off stops. European bank stocks are getting hammered again — DB on record lows, but those Italian banks are rebounding into the green from the recent drubbing. In London, angst evident as UK asset managers halt retail investors from withdrawing money out of property funds — weighing heavy on builders and banks, hitting the FTSE for 1.8% and FTSE 250 nearing down 2%, has lost 23% since Brexit. Volumes across the continent are heavy, with NO sectors trading positive early. In Asia, Nikkei was hit for 2% as carmakers and banks sink, Aussie lost 60bp as the Big banks weighed, while Shanghai reacted to the $/Yuan fix with a small rally. Financial markets in Singapore, Malaysia, India and Indonesia are closed for public holidays.
Japan’s 20-Year Government Bond Yield Goes Negative overnight, while Aussie bond yields hit record lows — driving the German 10YY to -19bp. The DXY is lower, as the $/Y rapidly approaches 100 in the overnight — while the Pound touches a 31-year low below $1.28. Metals are mixed, with Silver leaping 3% and Gold hitting another two-year high — while Ore fell 3% in China, causing Copper to retreat 2% from multi-month highs. Oil is adding to its biggest 1day whack since February, losing 1.5% as OPEC hit a record high output last month. Natty has lost an early 1.5% bid, dropping back into the red with no recovery from yesterday’s 7% smackdown. Dead Cat bounce in the Grains as wet weather persists in the Midwest.
Ahead of us today, we get US Trade Balance at 8:30 – Fed’s Tarullo (Voter, Neutral) Speaks on Regulation and Monetary Policy at 9. At 9:45 Markit PMI his, followed by the “official” ISM Services number at 10. At 2pm the U.S. Fed Releases Minutes from June 14-15 FOMC Meeting. At 4:30 we get API data (delayed from yesterday, DoE tomorrow) — Street looking for a overall draw of 2.5mm (Bloomberg) with a 230k+ build in Cushing (Genscape). Eyes will be on Kuroda as he speaks from Tokyo at 8:30 tonight.
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