Via Dave Lutz, head of ETFs at JonesTrading, here’s a super-quick guide to what traders are talking about right now:
Good Morning! US Futures are adding 50bp, as Earnings propels the index (FDX and ADBE) – While BOJ kept rates and asset purchases unchanged, Fins and Insurers in Japan loved the lack of NIRP and Steepening Curve — With the Nikkei climbing 1,9% and TOPIX Banks almost 7%. A wide sea of green over in Europe, as the DAX climbs 1.3% as Financials enjoy their best day in over 2months (but DB can barely hold a bid) — Energy companies are jumping on Oil’s jump higher overnight, Telecom jumps 2.4% and Tech 1.5%. FTSE is lagging a bit, as Staples, Industrials and HC all offset gains by the Miners. In Asia, Shanghai added 30bp, Aussie rose 70bp on the back of commodity companies, while Japan leaps almost 2% ahead of a holiday tomorrow. EM Asia all closed strong.
Ahead of the Fed today (Headlines and “Dot Plot” at 2, Presser at 2:30) – Fed Funds show a 22% chance of a hike today as attention focuses on December. Global Yields are relatively flat, despite a whipsaw in JGB’s on the BOJ headers, but both US and German Yields are flat to yesterday’s close. The DXY is off small, losing ground to the Euro and A$, while the Yen has strengthened due to lack of additional stimulus. Metals are mixed, with Silver and Platinum climbing 1%+, while Copper and Zinc Dive red. WTI up 2% as API last night showed a massive draw, while Gasoline has recovered 3% of yesterday’s smackdown. Softs are mixed.
At 9am we get the Conference Board China August Leading Economic Index, followed by the Bank of England Bond-Buying Operation Results at 9:50. 10:30 brings DOE data for Crude (API last night showed a DRAW of 7.5MM, against expectations of a 3.3MM BUILD forecast) — then attention turns to Washington for the 2pm FOMC Rate Decision and the “Dot Plot” headlines hitting right when the House Oversight committee hearing on EpiPen prices (MYL) kicks off — followed by the 2:30 Yellen Presser.