From Dave Lutz, head of ETFs at JonesTrading, here’s what traders are talking about on Thursday:
Good Morning! Doves continue to bid up US Equities, with the Spoos up 30bp and Nasdaq adding to its lifetime high. Europe is seeing sharp rallies across the continent, with the DAX up nearly 2% – Energy Stocks continue to act well, the Fins add 2% to yesterday’s strong showing — but this is broad based, with every sector up 1%+. In London, the miners are on Fire, propelling the FTSE thru 6900 despite weakness in the Insurers on Lloyd’s warning. Volumes are strong, with most exchanges across the continent 20-30% above normal trends. In Asia, Hong Kong rallied 40bp on Property Shares, while Shanghai was up 60bp paced by Tech – Aussie Miners were jumping — Emerging Markets loved the falling Dollar — While Japanese stock and bond markets were closed on Thursday for a public holiday.
The Dollar and US Yields remain near yesterday’s lows — while Fed Funds for December roam around a 62% chance the Fed moves then. The Dollars losses seem broad-based, with the Pound rallying from 5week lows — Euro back thru 1.12 – $/Y neared 100 overnight. Only the Kiwi$ is weaker after its central bank said further policy easing is expected. Commodities LOVE the weaker greenback, combined with Ore leaping 5% in China on steel shortage chatter — has copper at five-week highs, and Nickel up 2%. The Energy complex is bid up across the board, with WTI adding 1% and getting upside yesterday’s resistance. Softs all strong as well.
Ahead of us today, we get Weekly Jobless Claims; Chicago Fed Nat Activity Index at 8:30 – FHFA House Price Index at 9, right when ECB President Draghi Speaks at ESRB Conference in Frankfurt. At 10am we get Existing Home Sales, and Treasury Sec. Lew speaks at the FSOC — then Natty Gas Inventory data hits at 10:30. At 1pm BOE Governor Carney Speaks in Berlin, right when the US Auctions $11B in 10-Year TIPS Reopening. At 2pm Lutzie departs for Dulles wearing Hosen to meet 30 like-minded buddies — I will not be publishing again until Tuesday. Prost!