Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning, and Happy Quarter End! US Futures are starting the day slightly weaker, losing 10bp as investors digest a 3day rally in the S&P. Overseas markets are showing a far bit of weakness, with the DAX off 50bp as German Retail Sales Miss weighed on Consumer Discretionary issues. Banks continue to break lower in Europe, hitting Italy and Spain for almost 2%. The FTSE is off with the energy and basic resources sectors lower. Overall, volumes remain muted across the continent, with most markets ~20% below normal turnover. In Asian Trade, Shanghai rallied 10bp as the Yuan is fixed the strongest against $ for 2016 – Nikkei lost 70bp as exporters were whacked on strengthening Yen and FY end sell programs weighed – Aussie popped 1.5% as miners and the big banks rebounded, while most of EM Asia was mixed.
There was some heavy selling of JGBs overnight, driving yields from -9bp to -3bp as large pensions and Insurers rebalanced for Year End — That said, German and US Yields remain slightly lower, with the US 2YR trading downside 200dma and US 30YY finding stiff resistance at the 50dma. The $ continues to break lower as Euro gains despite choppy economic data, and the Yen continued to rally despite Kuroda dovish comments. With the weakening $, we have a tailwind under commodities, and we find Oil rallying back towards unch even as Asian imports of Iranian oil jumped, and Natty gaining 50bp ahead of Inventory data later today. The Metals complex is a mixed picture, With Silver and Platinum up 1%, dragging Gold to overnight highs, while Zinc and Copper are falling under pressure. Softs are red across the board.
Ahead of us today, we get Challenger Job Cuts at 7:30, just before Weekly Jobless Claims at 8:30. At 9 we get ISM Milwaukee, and 9:45 brings Chicago Purchasing Manager (9:43 for paying subscribers). Wholesale Sales and Inventories hit at 10, followed by Natty gas Inventories at 10:30. After the close, Fed’s Dudley Speaks on Financial Crises at 5, and heavy focus is on Chinese PMI overnight. In Washington, President Obama meets with South Korean President Park Geun Hye and Japanese PM Shinzo Abe to discuss North Korean threat at 10:30, followed by a meeting with China President Xi Jinping at 2:10 — and tonight SEC Chair Mary Jo White gives keynote remarks at Stanford University Law School forum “Protecting Investments in Pre-IPO Issuers.”
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