Via Dave Lutz at JonesTrading, here’s what traders are talking about before markets open.
Good Morning! US futures are in the green, led by a 20bp pop in the Nasdaq, despite another high-profile miss (QCOM). European markets opened stronger, buoyed by results from Logitech, STM, Credit Suisse, ABB, Publicis, Kingfisher, and Unilever – but it’s been nothing but sell tickets since, pressing the DAX into the red small. While Fins hav a small bid and Tech is rebounding, Discretionary shares are being sold. Volumes remain average. Over in Asia, Shanghai bounced 2.3% (now up 22% from the intraday low on July 9) – heavy chatter of state-backed buying of blue-chip companies helped the grind higher. Hang Seng popped 40bp as Macau names +7% after Sands beat, and Japan was up 45bp as the Yen broke lower. Aussie lost 40bp as energy and mining sectors fell as Iron ore again flirted with the $US50 a tonne mark after plunging 2.8% overnight. Taiwan was off 1.6% on tech weakness
The US 10YY is off small, but neared another key 2.3% test in the overnight. Demand remains strong for Bunds, despite Greek MPs backing crucial Tsipras reforms (Still no word when Athens opens). Heavy stop-loss action in EURUSD pushed the Euro back towards 1.10, but its attempts to get upside early have failed. The Commodity Currencies are having a good day, with Aussie and Canada stronger against the Greenback, and the Kiwi$ is squeezing higher as they cut only by 25bp (50bp expected). Doillar weakness should have a nice bid under commodities, and all the grains are higher and lumber is popping 1.5% – but a very concerning lack of bounce in Energy, with Oil and Natty firmly red. Eyes remain on that yellow metal trying to break its longest losing streak since 1996 (10 days down), and it’s adding nearly 1% and back upside $US1100
Aside from the slew of earnings today (336 companies) – the June RealtyTrac sales report will be released during the session – and scheduled catalysts include Chicago Fed Activity Index and Weekly Jobless Claims at 8:30 – Let’s see what the recent Greek drama has done to Euro Consumer Confidence at 10, alongside the USA Leading Index. Commodity traders will be watching the Natty gas Inventory data at 10:30, just before Kansas City Fed Activity at 11. The US Treasury is scheduled to Sell $US15B in 10-Year TIPS at 1. In Washington, there is a House Foreign Affairs hearing on Iran nuclear deal, and the Senate holds 1st hearing on Iran nuclear deal / Senate Banking hearing on systemic importance of bank holding companies / House Science Subcmte hearing on EPA’s renewable fuel standard / CFTC’s Massad discusses regulatory developments. At 2pm, the House Foreign Affairs Subcmte holds hearing on South China Sea…..