Via Dave Lutz at JonesTrading, here’s what traders are talking about before Monday’s open.
Good Morning! US Futures are continuing Friday’s NFP weakness, with the Russell losing 25bp early. This mirrors weakness overseas, which sees the DAX losing 60bp in very good volumes. Consumer Discretionary and Tech are the main drivers of weakness, while the Fins are buoyed as Deutsche Bank shares jump on CEO changes. Turkish lira falls sharply on election and their equity market lost over 7% at one point. Ukraine, Worsening Greece headlines, Turkey, US NFP all being blamed for the sea of red in Europe. Over in Asia, Shanghai Composite rose more than 2%, but the smaller, tech-heavy Shenzhen Composite fell 1.7% – KOSPI lost 20bp as S Korea remains baffled by spread of Mers virus — India lost 80bp, Japan closed basically unchanged, while Aussie was closed for Holiday
The US 10YY is retreating small after failing to stay upside 2.4% in the overnight, while Germany’s 10-year sovereign debt is up 2 basis points early, after being rejected from 90bp. Despite the $US gaining ground against Yen, the DXY is weaker as Euro remains bid over 1.11, and the A$ rallies. With the DXY weaker, we have a tailwind for commodities — especially Gold which finds itself up 50bp. All the softs are bid into WASDE data, while the Crude Complex is seeing some selling as OPECs meeting fades into the sunset. Very Quiet session of catalysts — We get a Obama presser from the G7 and the Fed’s Labour Market Conditions Index Change at 10; a IMF Staff Discussion Note on Managing Water Challenges at 2, while Bank of Canada’s Wilkins Speaks after the close. In DC today, the House to consider H.R. 2289, which would reauthorize CFTC while limiting regulation of overseas derivatives trades and modifying rules for swap end-users.