Via Dave Lutz at JonesTrading, here’s what traders are chatting about before trading in June gets underway.
Good Morning! S&P Futures are resting unchanged, wallowing near Friday’s lows — but Russell minis are jumping 25bp as Biotech shares surge north on ASCO announcements (immunotherapy headlines everywhere). Despite headlines indicating Greece’s chances of striking a deal to access a much-needed €7.2bn in rescue aid looked even bleaker ahead of Friday’s IMF payment, Most European markets are meandering around unchanged. The DAX is up 10bp as Tech and Consumer Discretionary shares act well, but Financials across the continent are firmly red as local Italian elections raise more Euro questions. Turnover is solid in the continent, with most major markets trading 20%+ heavier than normal. Over in Asia, China stocks rose sharply, as investors welcomed a chorus of domestic media commentary asserting the bull market has not yet ended. The Shanghai Composite rose 4.7% and the Hang Seng rose 0.7% – The CSI300 index of the biggest listed companies in Shanghai and Shenzhen rose 4.7%, its biggest single-session rise since December. Aussie lost 70bp as the Miners dropped on falling Ore prices, while Nikkei added small
The US 10YY is flat, but a sharp bid in Bunds continues as Italian paper gets hit, driving German yields near the lowest levels in a month. The $US is gaining against all majors, specifically Euro (Greece-Italy) and Asian Currencies (Manufacturing and exports across Asia remained weak in May — India, China, Korea, Taiwan). With the DXY well thru Friday’s highs, we have headwinds for commodities. Metals are weaker, led by a 50bp drop in Silver — While the Energy Complex is giving back some of Friday’s sharp gains as headlines indicate Saudi will retain record output. WTI and Brent are both off 1% early. Scheduled Catalysts today include Personal Income and Spending; PCE at 8:30 – Fed’s Rosengren Speaks at Employment Event at 9:05 – Fed’s Fischer Speaks on Financial Crisis at 9:30 — We get Markit US Manufacturing PMI at 9:45 ahead of the 10am release for Construction Spending and ISM Manufacturing. At 1pm today we get Gallup’s US Consumer Spending Measure. Both the Senate, House are in session — The Supreme Court Issues orders at 9:30am. No IPOs expected to price today.