Via Dave Lutz at JonesTrading, here’s a super-quick guide to what traders are talking about right now:
Good Morning! Some softness in US Futures, with SPX off 30bp early as Oil retreats and global growth angst spooks some players — It’s a Sea of Red in Europe, with DAX falling another 1.3% and FTSE down 1% – Energy shares remain weak, and the Mining sector is getting smoked. Banks were crushed early, but trying to recover – Volumes heavy, with Germany trading 1.5x normal and France 1.2x. In Asia, Nikkei hit for 1% on a unexpectedly large drop in machine orders, while Aussie lost 20bp as banks fell — and all of the Emerging Markets are red as the $ recovers. There were holidays in China, Hong Kong and Taiwan that had action muted across the region despite Chinese inflation posting light.
The US10YY down 3bp as 10Y Gilts hit record low yields, BOK surprised markets with 25bp cut, and the ECB bought corporate bonds in Volkswagen, Continental AG and Orange SA. The DXY rebounding from 5week lows as a Dovish Draghi headers weigh heavy on Euro, but the Pound recovers from recent angst, while the Kiwi dollar is the best performing currency after New Zealand kept rates on hold. Yen is ripping higher again. Commods are mostly red, with Gold, Copper, Platinum all under pressure as Ore drops in china and Turkey Scrap gets hit. Headlines yesterday that a new wildfire prompted Canadian oil producers to shut production buoyed the Oil complex, seeing good profit-taking now as Gasoline continues to drop on yesterday’s DoE headers. Natty basically unch into inventories later today.
Ahead of us today, we get Weekly Jobless Claims at 8:30, just ahead of US Wholesale Inventories at 10. The Natty Gas Inventory data hits at 10:30, right as Bank of Canada releases Financial System Review along with a Poloz presser. At 1pm, the US Treasury auctions off $12B in a 30Y re-opening. Reminder I will not be publishing “What Traders are Watching” the rest of the week — Doctor’s apt this AM, and headed to Chicago tomorrow.