Following one of the slowest days of the year in the markets, here’s a quick guide to what traders are talking about via Dave Lutz at JonesTrading:
Good Morning! US Futures are rebounding from the big trade on the close (Yesterday’s 71m SPY volume lowest since day after Christmas, a 8mln share block on the bell weighed) — with Nasdaq and S&P up about 20bp, slightly outperforming the DAX. While EU markets remain focused on a 2nd day of talks between Merkel and Tsipras – reports of a Airbus320 crashing in France this morning with ~150 on board has sentiment eroding quickly. Tech and Financials are your outperformers, while the consumer and industrials are solidly red. Subdued purchasing managers’ indices in China and Japan weighed on Asian equities, with Japan off 20bp and Hong Kong 50bp – Shanghai Composite finishes up +0.10% after falling over 2% initially on the HSBC release.
The US 10YY is under slight pressure, testing the 1.9% level in the overnight ahead of CPI data and a 2Y auction later today. The DXY is retreating again as Germany’s PMI comes in stronger than expected which sees the Euro rebounding towards 1.10. Most metals remain higher with Gold and Silver adding ~50bp — The Energy complex has a bid, with Brent and WTI adding 60bp, while Natty pops nearly 2%. Keep an eye on the Softs — Wheat, Corn and Soy all have been on a tear lately — and climbing from overnight lows. At 8:30 we get US CPI – FHFA House Price Index at 9, and Markit US Manufacturing PMI at 9:45. At 10 we get New Home Sales and Richmond fed headlines. Watch Sterling at 10:15 as MPs quiz George Osborne on last week’s Budget statement. We have a 2Y auction in the States at 1, ahead of API data after the close
Keeping an eye on:
- About $US7 billion in secondaries announced yesterday
- Headlines of Buyback Blackout Windows Starting (More in WTAW)
- Biotechs under sharp pressure today with technicans sparking momentum selling
- Transports sharp underperformer, early headlines no one survived the Airbus Crash coupled with higher Oil weigh early.
- “China” Trade was on fire yesterday — Aussie $US was very strong (continuing now), Copper leapt 4% (higher this AM), and Steel Companies like X and CLF were well bid.
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