Via Dave Lutz at JonesTrading, here’s a super-quick guide to what traders are talking about right now:
Good Morning! Futures under pressure for a 6th straight day after some bloodletting in Asia as BOJ stands pat and we get hit with our Daily Dose of Brexit Angst. Germany’s Ifo warns on Brexit, MS ramps odds of “Leave”, and fresh polls showing continued momentum have European markets on edge, with all major exchanges in the red in heavy volume. Banks across Europe taking the brunt of the selling. DB hits a record low in Germany and Swiss banks get hit as SNB warns on capital shortfalls. The FTSE FTSE on 4month lows, losing “only” 50bp despite every major sector getting hit. In Asia, eyes were on Japan as the Nikkei lost 3% as Yen few to a 20M high, Hong Kong dropped 2%, while China fell only small. Aussie closed near unchanged as their “Bond Proxies” held firm, countering the drop in Materials and Fins.
Havens are on fire early — German Bunds hit -3bp, US 10YY approaching 2016 lows. Gold jumping 1.5% and nearing 2Y highs despite a flying $. JGBs fresh record lows — Negative out 15years now, and the Swiss 30YY drops below zero. The Euro is getting whacked, with Yen and the Greenback making sharp gains, while all commodity currencies are under pressure. WTI down another 1.3% and on 3week lows as the uptrend from February is shattered, while both Natty and Gasoline see selling. Aside from Gold, Silver the only metal in the green as investors park a record amount in Silver ETFs. Softs are all mixed, with Corn and Soy seeing some pressure early.
Ahead of us today, we get Weekly Jobless Claims at 8:30, right when Philadelphia Fed Business Outlook and US CPI hits. At 10 we get the NAHB Housing Market Index, just before the release of Natty Gas Inventory data at 10:30. At 11:15, ECB Board Member Mersch Speaks. Towards the close, We will have gamma games whipping the market around into tomorrow’s Quad expiry.