From Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about on Tuesday morning:
Good Morning! Us Futures are up 1.3% from Friday’s close and continuing to follow the Oil complex – WTI added another 4%+ yesterday, but has given 3% of that back as meetings between Russia and Saudi end with a freeze of production, no cuts. Markets in Europe are seeing a pullback from yesterday’s gains, with the DAX off 60bp as the Banking Sector gives back a pile of last 2 days gains — DB down 5% and Emerging market-focused Standard Chartered down 7%+. In London, the FTSE is up 30bp as Consumer names do well and Oil major’s hold the week’s gains – BP and RDS both still up ~1% – while they hate Anglo’s new asset sales plan — the miner is off 7%, Rio and Glencore ~1%. Overall volumes in Europe are starting to slide a bit, with most exchanges trading 20% light to the last month’s averages. In Asia, Shanghai added 3.3%, its best day in over 3months, and remains up 3%+ from Holiday. Nikkei held yesterday’s 7%+ surge, adding 20bp – Energy and mining groups helped Sydney to rally 1.1%, while only India ended firmly in the red.
We are seeing some selling of Global sovereigns, despite the Japanese 10YY nearing a touch of 0% overnight — The US 10YY is up 3bp, but has been rejected from a 1.8% test several times so far — while the German 10’s finally go back up on the week. The $ is making some gains after being smacked to the downside yesterday — Greenback losing to Euro as the common currency regaining a lot of the 1% it lost yesterday on Mario’s latest “we will not hesitate to act” speech, with a weaker German ZEW an added weight — meanwhile a Kuroda speech overnight is not doing much to help the Yen weaken. Copper is having a nice week, climbing 1.8% so far, while Brent and WTI remain 1%+ higher from Friday’s close, which was the 14th best day EVER for Oil. Gold got beat down yesterday, but is rebounding despite the stronger $ and has regained 40bp of the 2.5% it lost on Monday. All the softs are higher for the week.
Ahead of us today, we get Fed’s Harker speaking at 8:30, right when Empire Manufacturing hits. At 10 we have the NAHB Housing Market Index, along with a EIA Deputy speaking on ‘State of the Oil Market’ — at 10:30 Fed’s Kashkari Delivers First Public Speech at Brookings, and 4pm brings us Total Net TIC Flows from the Treasury. API Inventory data is delayed until tomorrow, but at 7pm tonight Fed’s Rosengren Speaks at Colby College. Consumer Analysts Group of New York (CAGNY) kicks off today, so headlines expected from names such as GIS MDLZ HRL SYY TSN ADM RAI. It’s quiet in DC with many out west for the ASEAN summit, but at 8:30 the National Academies of Sciences, Engineering, and Medicine workshop on “Zika Virus Research Priorities to Inform U.S. Public Health Efforts”. 13F Deadline is today.
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