Via Dave Lutz at JonesTrading, here’s what traders are talking about before markets open on Wednesday.
Good Morning! US Futures are holding green as we await Janet’s testimony (8:30 Speech Release, 10am Testimony — Q&A from Maxine follows). While the S&P is adding 10bp, Nasdaq is well outperforming on Biotech M&A and names like NFLX, GPRO big higher. Over in Europe, the DAX is affing 25bp, but volumes are terribly light across the continent as they await not only Janet, but today is the deadline by which time the Greek parliament must adopt a number of reforms. Tech is having a strong day overseas, but Industrials and Discretionary are fading red early. Over in Asia, China’s markets shrugged off good economic data to fall 3%+, dragging Hang Seng into the red. Japan’s Nikkei index climbed 0.4% as the BOJ left monetary policy unchanged — but downgraded its forecast for economic growth and inflation. Aussie rose 1.1% as resource groups (Oil/Metals pop), Supermarkets (Earnings) and Fins leading
US and German Yields are retreating quickly from overnight highs ahead of Janet, with the US 10YY in the red now and struggling to hold 2.39%. The “haven” buying is pressing the Euro off peaks, and nearing unch against the USD. The BOJ downgrade has the Yen weaker, and Aussie$ is enjoying the tailwinds from China. With the DXY in the red, we have a tailwind for commodities – Zinc advanced with lead to the highest in about a month and Aluminium rose to the highest in more than a week as industrial metals gained after Chinese data came in better (Retail Sales, IP and GDP). The Softs are all weaker, led by a 1.5% drop in Wheat — but he Oil complex is stunning. WTI is off over 50bp despite API last night showing a massive drawdown (API said Crude Inventories Fell 7.3M, Street looking for 2mm drop). We get DOE today at 10:30
Scheduled Catalysts include Janet’s Speech release at 8:30 along with US PPI, at 9:15 we get Industrial Production. At 10am, Janet will read the released speech — but eyes will be up north for the Bank of Canada Rate Decision. At 10:30 we get DOE data, and sometime around 11am Q&A will begin for Janet. Fed’s Mester Speaks on Economic Outlook at 12:25 — and then at 2 we get the Fed’s Beige Book and Fed’s Williams speaking.
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