Via Dave Lutz at JonesTrading, here’s a quick look at what traders are talking about this morning.
Good Morning, and Happy Friday! US Futures are in the red, led by a 30bp drop in the Nasdaq with many Biotech names loss leaders early this AM. The Greek Circus continues with a slew of headlines — all focus rolling on June 18th’s Eurogroup meeting. Athens is off 3% with Greek Banks reversing most of yesterday’s gains — but all off the lows of the overnight. The DAX is off 50bp, cutting it’s losses in half early, but Materials and Financials seem to be the biggest drag. Volumes in the continent are quiet, with most markets trading 30%+ light to normal levels. Over in Asia, Shanghai Composite rose 0.9% to its best level since January 2008 despite massive outflows as the PBOC seen cutting Reserve Ratio as early as this weekend; Hong Kong’s Hang Seng rose 1.4%, Tokyo’s Nikkei 225 inched up just 0.1% but Sydney’s S&P/ASX 200 slipped 0.2% as miners struggled following falls for many commodity prices. The KOSPI lost 25bp as MERS concerns continue.
The US 10YY is up small after touching 2.36% overnight, while Bund Yields have been rallying after a 85bp touch as Greek paper gets hit this AM. All focus in FX however was on Merkel, as she made a rare intervention in the currency markets by commenting Euro is overvalued. The Surge in the DXY has the $US/Y on peaks, and most commodities under pressure. All metals are weaker, save Copper after yesterday’s smackdown — While the softs are all starting in the red. The Oil complex was off 2% earlier as Saudi Arabia said it was ready to raise output further if needed — but has since managed to stage a rally back toward unchanged. Scheduled Catalysts include PPI in the USA at 8:30 – U of Michigan at 10 and Baker Hughes rounds us out at 1pm. CFTC “Commitment of Traders” data hits at 3:30. In DC, at 8:30 FCC Chief Information Officer David Bray speaks on cybersecurity; while the House votes on fast-track trade legislation.