Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures adding to the S&P’s best 2day point gains of 2016 as Month-End Pension buying of Equities and Selling of Treasuries continues behind the curtain — guesstimates anywhere from $4B to $60B needs to be reallocated. Over in Europe, a Sea of green as all equity markets have rallied back form early weakness to post small gains. Seems a dive into defensive positions, with Utes, Staples, and Telecom leading gains. Fins are under some food pressure, as Fed’s stress tests results showed the Deutsche Bank and Santander failed. DB on 30-year lows this AM, while Italian banks dive 4.5% as Merkel dismisses bailout hopes. Over in Asia, Nikkei had its 4th day of gains, adding 10bp, while the small-cap “Mothers” index jumped 2.5% – Shanghai closed basically unchanged, while Aussie jumped 1.8%, led by energy and mining shares. Hong Kong, Thailand and Canada will be closed for holiday tomorrow
The US 10YY is off small, after the rip higher into the bell last night as Credit accounts sold to fund the big ORCL deal — while Germany’s 10YY is gaining a meagre 1bp. Sterling up small, holding gains from the week, while Euro breaks higher as EU Inflation a touch higher than expected. Despite the weaker $, many commodities under pressure, led by a 1% drop in WTI as it retreats from $50. Metals are mixed, with Gold falling despite the $, while most “industrial” metals are gaining small. Natty is basically unchanged into inventory data later today, and the Softs all look mixed to slightly better this AM
Ahead of us today, we get Weekly Jobless Claims at 8:30 — and at 9:45 the Chicago Purchasing Manager Index hits (released at 9:43 to paying subs) — 10:30 brings Natty Gas Inventory data, then at 11 attention shifts to BoE’s Carney. At 1:30 Fed’s Bullard Speaks in London — and at 2:30 Brent and Gasoline Contracts Roll with the close of NYMEX trading. At 4:30 we get Federal Discount Window Borrowings. Focus shifts to Asia tonight, with the release of Japan’s Tankan and China’s manufacturing and Non-Manufacturing PMI
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