Via Dave Lutz, here’s a quick guide to what traders are talking about this morning:
Good Morning! US Futures took off like a shot around 2:30am. Right when Oil reversed hard from lows as UAE minister says “open for cooperation to stabilise Oil market”. Right now the Spoos are up 65bp, and going for 1st 3day winning streak of 2016. Russell continues to well outperform, gaining 80bp and continuing the mean reversion we have been seeing in the last few sessions. Over in Europe, the DAX is adding 1.7% as Consumer and Industrial shares rip higher. ABN Amro getting hit on #s, but Credit Ag headlines have Euro banks jumping — DB is up another 3% this AM and nearing last week’s peaks. In London, the Miners are ripping on Glencore refinancing headlines. Glencore jumps 7%, Anglo 4%. Over in Asia, China stocks hits three-week high on stimulus chatter – Shanghai Composite added 1.1% – the Nikkei gave back 1.4% of the week’s 7% surge as Yen gathered more upward steam. A Late surge in India pressed the Sensex up almost 1%, while most of EM Asia closed mixed.
The US 10YY is up 2bp, and nearing the week’s peaks by 1.8%. Bund yields are higher, both Sovs pacified by JGB’s not breaking toward 0% again overnight. The $ is mixed early, As Rosengren’s comments last night have us a bit weaker to Euro, but overnight saw the Biggest weakening in the Renminbi since January, sparking a jump in the Yen. Industrial metals are higher, with Copper continuing to make gains despite Ore dropping 1%. All eyes remain on the Oil complex into API datatonight, as Talks are expected to continue in Tehran today to bring Iran and Iraq into the fold. WTI has added almost 2%, but was just rejected from a $30 test — the OI line there is thick and heavy, and we have headwinds building into Expiry on Monday. Gasoline is dropping a bit as heavy stockpile headlines are expected to continue.
Ahead of us today, at 8:30 we get US PPI along with Housing Starts and Building Permits for January. 9:15 brings us Industrial Production — then the “Main Event” of the day will be at 2pm when the Fed Releases Minutes from Jan. 26-27 FOMC Meeting. At 4:30 tonight we get API data for Crude, Gasoline and Distillates (Cushing flows are estimated to have jumped by 705,000 bbls) — and at 7:30 St. Louis President James Bullard speaks at Fed Forecast. Expect headlines continuing to roll from the Barclays Industrial Select Conference and Consumer Analysts Group of New York (CAGNY). Down in DC, at 10 a EIA Deputy Administrator headlines a CSIS panel on what the oil market may look like in 2016, at the same time the FDIC holds a board of directors meeting.
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