Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about before the opening bell on Tuesday:
Good Morning! US Futures are jumping higher, led by a 1% shot in the Russell. This mirrors strong equity action overseas, which sees doves bidding up multiple markets despite some single-stock disasters. Over in Europe, the DAX is up 1.5% as consumer discretionary and Tech shares rebound. The FTSE is hitting 2 month highs despite Barclays getting whacked for 11% on divvy cut — Miners (despite Glencore #s), Energy plays and LSE takeover headers driving the gains. While London is trading quite heavy, most European exchanges see very light turnover. In Asia, Shanghai couldn’t even rally 2% on the back of the RRR cut, but did help Emerging Market stocks hit week’s highs – Aussie pops 80bp as resource stocks rallied — Nikkei squeaked out a small gain as Japan sold 10’s at a negative yield in heavy demand (3x covered), while India has its biggest rally in 7years as their Budget is fuelling rate-cut hopes.
The US 10YY is higher, despite Fed’s Dudley seeing risks to outlook tilting to downside. The Treasury selling is a function of Bund Yields popping from 10bp and a heavy corporate calendar. The DXY is higher, with Euro getting hit as PMI data posts light and $/Y rallying as their PMI comes in light and PBoC set the renminbi stronger on Tuesday for the first session in six. Commodity Currencies are acting well, led by Ruble on Oil and Aussie $ as the RBA stood pat for the 10th month in a row. Despite the stronger $, most commodities are well bid, including Gold which is jumping 1% and approaching recent highs, while the Oil complex is higher as Saudi pledges to work with other producers and is seen to reduce Oil discount to Asian buyers in the coming days.
Pretty light on the Economic calendar, with Canadian GDP at 8:30, ECB’s Lautenschlaeger speaking at 9, and Markit US Manufacturing PMI at 9:45 just ahead of the “official” ISM Manufacturing data and Construction Spending at 10. We will get Monthly Vehicle Sales Numbers throughout the session, and after the close we get API data for the Crude Complex. Today also brings us the Super TuesdayPrimaries, where 11 states and 1 US territory go to the polls.