Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Futures retreating from a 6week peak, but staging a rally right now as Oil recovers from a 2% hit. Markets over in Europe generally in the red, as Consumer Discretionary shares decline. Fins weak in London as Shares in Standard Chartered plunge after bank reports $1.5bn loss, while Miners smoked after BHP slashes divvy. Financials in Europe seem to be shrugging off Stand Chart, as DB flat on headers that Investors only tendered €1.27bn of the €3B the bank offered to buy back. Over in Asia, Early Gains were lost in Japan and Aussie, which both closed about 50bp lower. India was whacked for 1.6% — Banks weighed down under and on the Sensex. China closes red as Yuan fixing is weakest in some time, while most of EM Asia was able to close in the green.
Havens were in favour early this AM, with Gold and Treasuries higher, but seeing a reversal of those trends as more US traders man their posts. Eyes on Sterling as Pound hammered towards 7Y lows as Business advisers to David Cameron and major UK companies decline to sign pro-EU letter — while the $/Y thru 112 to downside as PBOC weakened China’s Yuan overnight (biggest margin of weakening since Jan 7th). Kuroda on Tuesday said that a central bank can’t necessarily raise inflation expectations by flooding the banking system with cash, adding to some angst in Asia. Meanwhile the Euro drops to 3-week low after Ifo sentiment slumps to 4-year lows. Industrial commodities under some pressure, with Copper and Zinc off 50bp+, while precious metals like Gold and Silver attract inflows. WTI is rebounding toward unch near $33 (New spot contract today), while Natty Gas continues to leak lower — dropping another 1% and approaching December’s 20Y+ lows.
Ahead of us today, at 9 we get Case-Shiller, followed at 10am by Existing Home Sales for Jan. Consumer Confidence and Richmond Fed also hit at 10am, wrapping up the days economic releases. At1pm the US Treasury is looking to auction $26B in 2Y notes. After the close, we get the API data for Crude at 4:30, then Fed Vice Chair Stanley Fischer speaks on the “Future of the Global Economy” at8:30 tonight from CERAweek in Houston. Down in Washington, at 9:45 a CFTC meeting of Technology Advisory Cmte to discuss proposed regulations on automated trading, while at 10 there is a FDIC press conference to discuss 4Q financial results for all FDIC-insured institutions.
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