Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning, and Happy St. Patrick’s Day! US Futures had started today adding to yesterday’s gains, but a few headlines has reversed equities in Europe sharply, hitting the S&P for 40bp early. Fins getting hit across Europe after Norway’s central bank said it could join peers in pushing interest rates into negative territory — with several banks in Italy limit down. Lufthansa #s weighing heavy on Airlines across the continent as well. On the positive side, Euro Mining companies had ripped 5% higher early, and Glencore in London was up nearly 10%, but CAT #s are starting to weigh. The DAX is off 1.7% with those Fins collapsing 3%, while the FTSE is off only 50bp as Miners support. Turnover is heavy, with most markets trading 50-70% above normal 20day volumes. In Asia, Shanghai jumped 1.2%, while Japan shares tanked in the afternoon with the NKY closing below 17k as the yen broke below $/Y112. Aussie closed up 1%, led by mining and energy stocks, while all of EM Asia posted gains.
Heavy Haven buying early, with Gold breaking higher and Treasuries and Bunds very well bid. The US 10YY has dropped another 4bp and testing 1.85%, and the Dollar continues to fall apart as the market digests a more “dovish” Fed. The Euro pops above $1.13 for first time in a month, while the Pound awaits the Bank of England meeting. Commodity currencies, such as the Australian, New Zealand and Canadian dollars as Ore leapt 4% overnight — driving sharp gains across the metals complex — Silver, Zinc, Gold and Copper all up 2.5%+. In Energy, Oil continues to rally, gaining another 1.7% with WTI approaching $40 as a number of large producers nailed down a date for an output freeze meeting — While Natty gains 1.4% ahead of inventory data later today.
Ahead of us today, we get the Bank of England Bank Rate Decision at 8am, followed at 8:30 by Weekly Jobless Claims, the US Current Account Balance and Philly Fed Index. At 10 we get the US Leading Index and JOLTS Job Openings, and at 10:30 Natty gas Inventory data hits. Inflation watchers will focus on the Auction of $11B in 10Y TIPs at 1pm. Down in Washington, focus is on a 9:45 Senate Special Cmte on Ageing hearing on price spikes for decades-old prescription drugs featuring several Turing execs (but no Shkreli).
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