It’s a Tuesday that feels like a Monday in New York, and via Dave Lutz at JonesTrading, here’s a quick guide to what traders are chatting about this morning.
Good Morning! US futures are starting stronger, led by a 70bp pop in Nasdaq. This mirrors sharp strength overseas, which has seen the DAX pop 1% in the last 2 days and EU stoxx eyeballing 6Y highs. Europe has outperformed USA by nearly 7% in 2015 as we await ECB QE this week. Greece is a lone standout in the red ahead of Sunday’s elections – The latest poll last night showed anti-bailout Syriza stretching its lead to 6.5 percentage points. Over in Asia, Shanghai bounced back from yesterday’s margin-headlines 8% slaughter, adding 1.9% as headlines show China’s economy grew at its slowest pace in 24 years. India’s Sensex hit all-time highs despite IMF cutting forecasts for global growth, while Korea’s KOSPI added 80bp on chatter Sammy to split. Aussie was under pressure, as the Energy companies were under sharp pressure.
The US 10YY is slightly lower but resting over 1.8%, and the Yield Curve is flattening, a slight headwind to Financials this AM (coupled with MS #s). German Yields are slightly higher as German ZEW rose more than expected. The USD is breaking to new highs, gaining against Euro and sharply against Yen, the latter nearing Y119. Despite this headwind, Gold is ripping towards $US1300 ahead of ECB QE. The Oil complex was under decent pressure yesterday, and this morning finds Bren near unchanged, but WTI is under pressure into Expiry of contracts today, losing 2%. Copper is under pressure again on China numbers. On earnings, we have BHI, HAL and DAL on falling Oil price impact this AM. Tech rules tonight with IBM, CA, AMD and NFLX. Very light catalysts scheduled today otherwise — at 10am we get the NAHB Housing Market Index, and at 2:30 WTI contracts expire at the close of floor trading. Tonight Obama delivers State of the Union address at 9, and the BoJ decision is announced.
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