From Dave Lutz at Stifel, Nicolaus, here’s an ultra-quick roundup of today’s trader talk:
US Futures are starting on weaker footing this AM, mirroring overseas markets. Much of the global angst is Yen driven, which is catching a bid due to a lower than expected stimulus package being discussed. Nasdaq Futures are outperforming SPX, as AAPL pops over 1% on a upgrade from UBS. Some other “high Beta” names are mixed this AM, with TSLA up 2%, DDD up 1%, but FB losing 40bp. Over In Europe, Markets are considerably weaker in heavy volume. The DAX is off 1%, with volumes 140%+ over the 20day average, while France’s equity market is getting hit for 2%. Focus on the EU fins, which are getting hit for almost 2% (I’ll be surprised if we don’t see a bid developing as US traders man their Bloombergs).. The Nikkei managed a fresh 6year closing high, before the Stimulus details were released by Reuters, which has hit the Nikkei futures for over 1% early this AM. China managed a rebound after the IPO induced weakness today, with their smallcap index surging back after the 8% smackdown yesterday. Aussie lost 50bp, but globally resources companies continue to underperform. Focus today will be in the Autos, as November sales data is released. Bear in mind also, while searching for Liquidity, a few UK firms are hosting Charity Days today.
The 10YY is retreating slightly lower, after tasting 3M highs yesterday — but the Spread between US and German Yields has widened to 7Y highs on diverging Central Bank Policies. The DXY is under pressure this AM, losing ground to both € and Yen. This is a natural tailwind for commodities – but Gold has a “dead Cat” bounce feel, barely holding green — WTI is up small into Inventory data release tonight – but losing ground to Brent (Telling with DXY weaker). Natty Gas is getting hit for 40bp, as we enter a seasonable tough month for the commodity, and Japan’s Tepco is holding off on LNG purchases due to high prices. Aside from Vehicle sales today, we have ISM NY at 9:45, but the big driver may be the double POMO whammy —> Fed has a $US750mln – $US1B purchase at 11am, followed by a $US3-4B purchase operation at 2pm.