Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about on Friday:
Good Morning! US Futures are off slightly, hovering around yesterday’s Q-End peaks as Holiday volumes start to take hold. Over in Europe, markets trying to build on their largest three day percentage gain since November 2011, with the DAX climbing 50bp as Autos are leading to upside, led by VW. The FTSE 100 poised for best week since 2011, stunning enough, with Discretionary leading to the upside and Miners reversing early losses. Fins are the notable laggers across the continent, with those Italian banks off 2% while DB tries to rally from 30Y lows. In Asia, Nikkei added 70bp, while Aussie added 30bp. Nifty50 broke past its crucial resistance level at 8,300 — while Shanghai was unch as PMIs hit inline. The MSCI Emerging Markets Index is on a three-week high. Hong Kong, Thailand and Canada are closed for holiday today.
Speculation on ECB buys and QE from the UK has Yields in France, UK, Japan, Netherlands and the USA hitting record lows this AM. The Pound drops as Bank of England’s Mark Carney hints at fresh interest rate cuts, while the Euro is holding a bid as Eurozone unemployment falls to five-year low and manufacturing growth jumps. The DXY is on fresh overnight lows, helping the commodity complex – Steel Futures in China Climb to Eight-Week High, while Silver leaps 3.6% to 22month peaks. Gold is jumping 1.2%, while Copper has reversed lower, losing 1%. The Energy complex is starting under pressure as Gasoline drops 2%, while WTI is under yesterday’s lows and struggling to hold $48 in the overnight.
Ahead of us today, we get June Domestic Auto Sales throughout the session. At 9:45 we get Markit US Manufacturing PMI, followed by the “official” ISM Manufacturing and Construction Spending at 10. At 1pm we get the Baker Hughes Rig Count, followed by the CFTC’s “Commitment of Traders” data at 3:30. Down in Washington, the House and Senate have headed home for the Holiday weekend. I anticipate many of the Traders in the USA have done the same — Volumes were 25%+ lower across Europe and Asia overnight.