Viz Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about before the market open.
Good Morning! US Futures are retreating 60bp, with the S&P back under the 50dma — as European markets get softer. The Greece circus of words continues, driving up levels of angst — coupled with tailwinds from equity reallocations on Q end subsiding. Better German retail sales and jobs data has driven the doves away for now, along with a upward revision of UK GDP. The DAX is off 1% in light volumes, with a sharp retreat in Consumer Discretionary leading the downside while the Fins are getting hit fast. Over in Asia, Profit-Taking finally hits China, with the shanghai losing 1% overnight — The Nikkei was hit for 1% as the Yen retreated from 120, while Aussie rallied 80bp after data showed private sector lending at its highest in six years. Feels like the selloff this morning is driven from the macro — Greek Angst (yields out); No Chinese Stimulus (Big China bid y’day in US equities); and a drop in the commodity complex
US Yields are lower as the $US makes gains against the Euro (despite better German data) — nearing a 1.07 test in the overnight. Aussie$ has been coming in as China Stimulus bets from yesterday subside, hitting Copper for 1.5%. The Oil complex is getting hit on 2 major headlines – Libya working to reopen Oil ports and nearing of a Iranian agreement (In theory, Iran deadline is tonight, but certainly could get pushed out – chatter to 4/14) — Seeing both Brent and WTI off nearly 2%. Scheduled catalysts today include Fed’s Lacker Speaking on the Economic Outlook in Richmond at 8am, we get Canada’s GDP at 8:50. Fed’s Lockhart Gives Welcome at George Conference at 8:55, and 9am brings ISM Milwaukee along with the S&P Case-Shiller index. At 9:45 (9:43 for paying subs) we get Chicago PMI ahead of Consumer Confidence at 10. Fed’s George Speaks in New York at 3, and we get API inventories after the close.
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