Via Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures and the Peso are declaring Hillary the winner last night, with the Spoos adding 30bp. That said, it’s a sea of Red over in Europe, with the DAX off 80bp — Banks hit as Deutsche Bank whacked to another fresh record low today and Commerzbank fell on chatter they will suspend Divvys — While VW hit on prospects of a large US fine. The FTSE is outperforming slightly, as Staples and Discretionary shares act well. Volumes are solid, with the DAX trading 40% heavier than normal. In Asia, Nikkei rallied 2.3% from lows to close 80bp higher — but Banks remained under solid pressure; Shanghai Composite Index and Korea’s Kospi both reversed losses to close 50-80bp higher – Companies with heavy U.S. market exposure were among the biggest gainers in Hong Kong. EM Asia closed slightly lower.
Havens are slowly regaining overnight losses, with the US and German 10YYs dipping back in the red. The DXY is up small, as the $/Y rebounds from 1M lows – the Euro fell for the first time in five days — offsetting the Mexican Peso’s biggest single-day jump in close to 4 months. Gold is nearing unchanged despite the stronger $, while Industrial metals are mixed, with Nickel higher on Philippine outages, but Copper is getting hit for 1%. The Oil complex is getting hit for 1.6% as Iran and Saudi headers dash hopes for Opec deal in Algeria — while Natty Gas is gaining small. Softs all seem higher despite the stronger Greenback headwinds.
Ahead of us today, at 9am we get Case-Shiller for housing. 9:45 brings Markit US Services PMI, just before the US Consumer Confidence Index and Richmond Fed Manufacturing at 10am. At 11:15, Fed Vice Chair Fischer speaks at Howard University. After the close, we get earnings from NKE — then those API weekly oil inventories at 4:30 — Bloomie estimates guesstimate a build of 2.7MM overall, with Gasoline stocks off 250k — Genscape yesterday called for a draw of 270k from Cushing.