Via Dave Lutz at JonesTrading, here’s a quick overview of what traders are talking about this morning.
Good morning! US Futures are creeping into the green, led by a 20bp pop in Nasdaq on the back of a slew of #s and continued Fed tailwinds. Over in Europe, Investors are shrugging off Greek Headaches (Tsipras will meet with his party today to discuss the possibility of a snap election) to focus on the Heaviest day of European Q2 earnings season — numbers from Nokia, Siemens, Royal Dutch, Deutsche Bank, AstraZeneca, Rolls-Royce, RBS and others have the FTSE up 80bp and DAX 50bp in very heavy volumes. Energy and Industrials having a very strong day, gaining 3%, while the Fins are up 1% on average. Asia was looking at a benign session, then Chinese stocks fell suddenly in the last hour of trading on Thursday, almost wiping out Wednesday’s rally — Shanghai fell 2.2% as Airlines got smashed — hitting Hang Seng for 50bp. Seoul’s Kospi index lost almost 1% (Samsung #s weigh heavy), while Japan added 1.1%, ending a 4day losing streak and Aussie added 80bp.
Ahead of a first reading for second-quarter U.S. GDP, the US 10YY is precariously hanging green right now, but failing to show any momentum above 2.3%. There has been a sharp bid for Bunds, pressing the German 10YY well below yesterday’s lows. The Greenback is creeping back toward multiyear highs as it makes gains against Euros (under 1.10), Yen (Thru 124) and commodity currencies — Aussie is falling fast on China, while the Loonie drops on commodity exposure. With the higher Dollar, we have a tailwind for commodities — but Copper and Silver are getting hit, and Gold is failing to show any life despite the tailwind. Brent is rebounding 1.5% as Saudi headlines cause some covering, but Natty gas here in the States is falling 1% into inventory numbers later today. Every “soft” is higher, and Coffee is quickly surging another 2% as a player tries to corner the spot into expiry tomorrow.
At 8:30 we get Weekly Jobless Claims, along with the 2Q U.S. GDP first reading (and double revision of Q1). Natty gas Inventory data hits at 11:30, and at 1pm the Treasury auctions off $US29B in 7Y notes. 20 miles West of Annapolis. At 8:30, Sens. Lisa Murkowski, R-Alaska, Mark Warner, D-Va., speak on ways U.S. can leverage energy resources globally, Atlantic Council event — while at 10 the Senate Foreign Relations Cmte holds hearing on Iran nuclear agreement. Senate to vote on its 6-year highway bill; a Senate investigations panel holds hearing on U.S. tax code, and at 6pm tonight, President Obama holds conference call for “grassroots organisations from across the country” trying to sell the Iran nuclear deal.