Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about as they start the trading week:
Good Morning! US Futures are holding the vast bulk of Friday’s gains, as a rash of M&A headers (TFM, HOT, Strategic Hotels) help the S&P hold above its 200 dma. Overseas markets are mostly higher, with the DAX up 1.5% and battling to get upside 10,000 as Investors shrugged off German Elections. Almost every sector is higher in Europe, led by the Banks, with only Energy the red spot as Brent falls below $40 again. In London, the FTSE is gaining 60bp as Miners are on fire, with Glencore up 6% and Anglo 5%, with only Utilities and Energy in the red. Volumes across the continent are mixed to better. Shares in Egypt jumped after central bank devalues currency, while Turkey shrugged off the latest terror headlines to gain small. In Asia, CSRC chairman saying the gov’t will continue with intervention policies, helped China jump nearly 2%, while Nikkei leapt 1.7% as the Yen weakened and stronger-than-expected rise in Japanese machine orders got stocks running – Financials performed well throughout the region – Aussie closed up 40bp, relinquishing a pile of morning gains as A$ hits 8M highs.
The US 10YY is off small, following German yields lower as JGB yields dropped 2bp to -4bp ahead of the BoJ decision tomorrow. The DXY basket continues to regain some ground from last week’s smackdown, with Euro weaker despite Eurozone industrial production ahead of expectations. Most commodity currencies are lower, with Aussie$ finally retreating after the surge thus far in March. Despite the stronger $, Gold has a bid to it, gaining 50bp — and most Industrial metals are popping despite Ore falling 1.1% in China. Focus remains on the Oil complex, and its impressive Equities are holding gains as WTI drops over 2% in the early go. Nat gas is finally retreating last week’s surge, dropping 2% as warm weather and high inventories cause headwinds.
We have a quiet day of Catalysts ahead of us today, as investors get ready for a rash of Central Bank Headlines later this week (Tuesday Japan / Weds US, Iceland / Thurs Swiss, Norway, UK, Chile, SARB, HK, Indonesia / FridayRussia, Mexico, Colombia). Bank of France’s Villeroy de Galhau speaks at Noon today in Paris, while we get Brazil Trade Balance at 2. Down in Washington, the House meets at noon and is scheduled to debate 14 measures incl. four energy-related bills — while the Senate convenes at 3pm and has scheduled roll-call vote on John King to be education secretary.