Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! US Futures are under decent pressure to start this December Friday — losing 65bp as global equities continue to follow Oil’s path lower this AM. DJIA Futures are faring a bit worse, as DD gets hit as the DOW merger details hit the tape. Over in Europe, resources groups continue to get whacked – The DAX is off 1.8% as the selloff intensifies in the consumer discretionary and materials shares, while the miners and Energy listings are dragging London 1%+ lower. Over in Asia, our Asia desks notes that Japan outperformed as short covering ensued following quarterly expiry this morning — while China/HK closed lower as Fosun International headlines worsened, ahead of weekend data including IP and retail sales. Emerging markets were down for an eighth day running and on course for their worst week since September, and Aussie’s banks tried to rally, but a late day selloff finished the ASX in the red and off 2%+ for the week – Banks were weak across Asia (China, Aussie, HK, India), and Financials are 1.5% lower on the DAX, EuroStoxx and FTSE.
The US 10YY is, like equities, following Oil’s path lower as the commodity drops 1.5% on headlines the “IEA warns global oil oversupply could worsen in 2016.” — This is causing some slight waffling on Liftoff bets next week, as more eyes focus on Oil and Miners damage to the High Yield market, exasperated by headlines of “flood gates dropping” and a large bearish HYG Put Spread trade hitting late yesterday. The $ is retreating as we await US retail sales, with gains by Euro and Yen weakening the greenback — but many eyes are on China’s renminbi being lower again, adding to its longest losing streak in 10years. We have a interesting bid in Copper to, with the red metal popping 1.6%, with right behind in tow. Despite the drop in the $, the Precious metals continue to follow Oil’s path, with Gold off nearly 75bp despite the weaker $ tailwind.
The Main event this AM is US Retail Sales, hitting the tape at 8:30 along with our PPI read. Business Inventories and the timely U. of Mich. Sentiment hit at 10am — then the Energy patch will await 1pm’s release of the Baker Hughes Rig Count, where a sharp drop could spark heavy covering into the closing hours. Down in Washington, today is the Deadline to pass a spending bill or risk government shutdown, and expectations are of a short-term extension being passed. President Obama has no public events scheduled, while the Supreme Court may issue list of cases it’s planning to consider.