Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about this morning.
Good Morning — US Futures are higher, led again by Nasdaq’s advance on the back of INTC and NFLX. Global markets are breathing a sigh of relief as Athens passes reforms – Europe’s markets are jumping into the ECB decision (7:45ET. Presser at 8:30 from the Draghi) — with the DAX up 1.6% led by a big jump in Consumer Discretionary and Financial Shares. Volumes across the continent are trading average, save Spain where the IBEX is up 1.4% in heavy trade. Over in Asia, focus remains on China’s volatility, where the Shanghai Composite gained small after initially being hit for 3.5% (Just over 10% suspended now on Shanghai – # continues to drop). Japan’s Nikkei rose 70bp as the Yen broke down, Hong Kong’s Hang Seng climbed 0.4% and Australia’s ASX 200 advanced 60bp as Banks rallied. While Taiwan was the only market to finish lower in Asia — keep an eye on the Autos, Audi hinted it could cut its full year China sales target given slowing demand — may weigh on all issues globally.
The US 10YY is gaining small, but a very benign pop in German and US Yields as a “harder hurdle” than last night’s Greek vote awaits tomorrow as the Bundestag is expected to convene to debate the issue. Much heavier headwinds in Germany than Greece Politically selling this. Along with the ECB decision, we get their latest decision on funding for Greek banks (Expectations leaving ELA unchanged). The US$ is continuing yesterday’s surge, gaining against Euro (Breaking 1.09 fast), Yen (USDJPY testing 124), Canadian$ (Shock rate cut lingers), and the Kiwi$ is hitting 6Y Lows (Milk Auction results and light inflation #s). Givent he $US rally, we have a headwind for commodities, but the Crude complex is rebounding from yesterday’s weakness (WTI just failed to hold $US52). While the metals are mixed, keep an eye on Gold — Edging toward downside of yesterday’s 8M low.
Scheduled Catalysts today begin with the ECB Rate Decision at 7:45, followed by the Draghi Presser at 8:30. US Weekly Claims hit at the same time, then at 10am we get the Philadelphia Fed Business Outlook alongside the NAHB Housing Market Index (Homebuilders acted terrible y’day). Natty gas Inventory data at 10:30, then BOE’s Carney Speaks at 2. Janet heads over to the Senate for questioning (Same testimony, only Q&A afterward usually impactful) at 2:30, just before the Treasury’s TIC flow data hits on the closing bell.