Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about the market opens on Friday.
Good Morning, and Happy Friday! US Futures are mixed, with the S&P off small, but Nasdaq adding to record highs on the back of GOOG. Euro Markets are seeing profit-taking to the 7day winning streak, as Germany and Austrian parliaments to vote on Greek bail-out talks today — Germany’s lawmakers are voting right now. The DAX is off 25bp as Fins fall small, but the Consumer discretionary sector remains well bid on the back of positive results from Electrolux, Ericsson, and Volvo. Over in Asia, the Shanghai Composite popped 3.5%, leaving it up slightly on the week, while Shenzen added nearly 5% in its best rally since 2012. Japan’s Nikkei rose 0.3%, a fifth consecutive day of gains – Hong Kong’s Hang Seng added 1%. Aussie closed mixed with Banks adding to the week’s rally, while miners saw some weakness despite another overnight rally in Ore.
The US 10YY has spent most of the morning under 2.35% as it keeps a cautious eye on the Oil complex. Germany’s Bunds continue to see demand, driving their 10YY off 3bp into voting. That said, the Euro is trying to recover from its worst weekly slide since 2009, but failing to recover over 1.09 despite multiple attempts. Overall though, the DXY remains near yesterday’s peaks as the Commodity currencies continue to weaken — Aussie, Canada and New Zealand — assumptions building fast for a 50bp cut next week from the Kiwis as Milk prices collapse. Copper is having a bad day, off 1%, leading all the metals lower — as Platinum prices hit 6.5-year low today as Auto sales weigh. Softs are all under some pressure — but keep an eye on Oil — WTI can’t hold a bid into Rig Count Data, while Brent is barely positive despite North Sea Outages.
Scheduled Catalysts today include Housing Starts for June at 8:30 (Homebuilders have been sharply for sale) — US CPI at 8:30 (Gold in collapse as $US rallies) — at 10 we get U. of Mich. Sentiment and Fed’s Fischer Speaks in Washington. At 1 we get the Baker Hughes Rig Count just before the weekly “Commitment of Traders” data hits at 3:30.