Dave Lutz of Stifel, Nicolaus passes along the topics about which he is talking with traders this morning.
US Futures starting under pressure early, with SPX off 30bp – Weight continues from Europe (We saw or lows prior to the EU close), as the EU Fins off 1% and the DAX trying to recover after a weaker ZEW survey. U.K. stocks were on track to break an eight-day winning streak on Tuesday, with miners adding pressure a metals are under pressure – The Nikkei was under pressure as Y102 provides heavy resistance, and continued rotation away from JGB’s pressed Interest Rate Sensitive stocks lower. China lost 1% as Shanghai Home sales leap 30% – but the KOSPI jumped 1% on bargain hunting and Strength in Autos. No real bounce in the Nifty after the smack yesterday, despite Indian Inflation coming in near 4Y lows.
PIIGS Spreads are basically unchanged, while money is flowing into US 10Y as the Yield retreats from 6week highs. Plosser had hawkish comments on the tape – He is the main Hawk on the FOMC, so no surprise there, and the weaker ZEW is weighing on €, as anticipation increases on more action from the ECB – this has a bid under the DXY – a natural headwind for commodities. Gold is off 50bp on weaker Indian Inflation, but Copper smacked for 2%+ on recent profit taking. The Oil complex is under pressure as IEA posts their medium-term views, and interesting WTI ourperforming Brent despite the conflicting supply views there.
As a reminder, the Tuesday Winning Streak stands at 17 in the DJIA – Headwinds early getting that streak intact – we have the Tepper Interview at 7:40 on CNBC, he is chattered to be bearish on Equities today – Tech will be a velocity group today, with JPM’s TMT Conference kicking off, and Gartner data released on Smartphone adoption (+ve AAPL and Sammy, -ve Nokia)