Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! US Equities trying to add to 5week winning streak, with the S&P being dragged out of the red by European Markets. The DAX is up 50bp and struggling to stay upside 10,000, as strength in Financials offset Energy weakness. The FTSE is up 10bp as HC rebounds 1%, with the Mining complex seeing profit-taking. Turnover is decent in Europe, with Germany pacing it’s 20day average, but very light in London where the FTSE is trading 30% light to trend. In Asia, China jumped 2.2% and got upside 3k led by brokers as policy makers loosen controls on margin lending – Japan equity markets were closed for holiday, while Energy stocks and banks led Aussie lower by 30bp. India added 1% while most other EM Asian stocks were closer to unch.
The US 10YY is unchanged, while Bunds are reversing some sharp strength which drove their 10YY near 18bp. The DXY is continuing last week’s weakness early, with Euro jumping back towards 1.13 and the Aussie$ hitting new 9M highs on early election headlines. With the weaker $, we have a tailwind for commodities, and headlines that Ore in China hit 9M highs has the metal complex mostly bid, led by 50bp pops in Copper and Silver. Gold continues to see profit-taking, with the metal trading back towards $1240 early. The Energy complex is mostly weaker, with WTI off 1.2% into expiration today. Natty Gas is 1% weaker, while Gasoline continues to hold a bid.
Fairly light day of catalysts to start this holiday-shortened week. At 8:30 we get the Chicago Fed Nat Activity Index, just ahead of Existing Home Sales for February at 10. Fed’s Lockhart (Neutral, Non-Voter) Speaks on U.S. Economy in Savannah, Georgia at 12:40. The Apple product event in Cupertino, California kicks off at 1, while April WTI futures expire at 2:30 today. Down in Washington, Obama is in Cuba, The Senate is in Recess, while the House meets at Noon. At 2pm the United States Energy Association holds briefing on “Will We Ever Stop Using Fossil Fuels?”
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