Via Dave Lutz at JonesTrading, here’s a quick look at what traders are talking about this morning.
Good Morning — US Futures are flying higher, with the E-Minis testing yesterday’s peaks, up 1.3% from the close. The optimism is being driven by China’s Market rebound, and positive rhetoric coming from Eurozone Ministers on Greece. The DAX is soaring, gaining 2% as the Financials across the continent scream higher by 3-4%+. Tech names are rebounding, with most Semis bid as Gartner PC slash has been priced in — and all eyes on AAPL pre-market, rebounding 2% after losing nearly 10% in the last 2 sessions. Spain trades +2.9% higher, Portugal +2.8% and Italy +2.6%. Over in Asia, Shanghai Composite finished up 4.5%, marking its biggest two-day gain — 10.6% — since 2008 – Only seven Chinese stocks fell while more than 1,000 companies hit their daily upward limit. Hang Seng has felt the ripple effects from China, gaining 2% – While Aussie squeaked out a minor gain. The red spot in Asia was in Japan, where the Nikkei lost 40bp as Fast Retailing collapsed 6%.
US and German Yields are ripping thru yesterday’s peaks as we await Greek Headlines and Janet’s speech today. Peripheral yields are all tighter, led by a very sharp bid in Greek Bonds — knocking their 10YY down nearly 4% this AM. With this Greek Sentiment, the Euro is flying thru 1.11 this AM, and the $US is losing ground across the board — causing a tailwind for commodities. Most metals have a bid to them, but a notable loser is Copper, dropping 50bp despite China. The Oil complex is higher as signs point to no Iranian deal — but off their best levels as the IEA warns on the market’s oversupply building. Softs are all marked higher into the Noon USDA report. Catalysts today include Treasury Sec. Lew speaking at 8am — at 10am we get Wholesale Inventories, followed by Boston Fed Pres. Rosengren’s speech at 11:30. USDA WASDE corn, cotton, soybean, wheat data at High Noon, but all eyes and ears will be focused on Cleveland for Yellen’s speech at 12:30 ahead of her Congressional Testimony next week. At 1pm the Oil complex will be eyeballing the Baker Hughes rig count.