Via Dave Lutz of Stifel, Nicolaus, a roundup of what traders are talking about and how they see the market:
Thanks to Putin’s soothing moves, the S&P Futures are up 1%+ and eyeballing new all-time highs this AM. While Putin declares a “Unconstitutional Coup” in Ukraine, he pulls troops back to bases, and says he has no plans to annex Crimera, raising hopes that a peaceful solution might be reached. March VIX futures are off 8% early, reversing most of yesterday’s VIX surge. Overseas markers are jubulent, with the DAX jumping 2% in volume almost 40% above recent trends and EU’s VIX is off 17% right now. The EU fins, hard hit yesterday on exposure worries, are enjoying a 2.5% upside move. Over in Asia — Shanghai lost small as their National Party Congress is about to open, where they will set a growth target (Most expecting 7-7.5%), and the Nikkei gained 50bp in light trading as major FX rallied against the Yen. Most Ukraine Contagion markets are in rally mode — led by Russia popping 4% after yesterday’s 10% smack lower — and both turkey and Hungary adding 2%+ apiece. Globally Materials and Industrials are among the best performing groups, but every subsector in EU/UK is in rally mode this morning. Some Single stock movers include TSLA gaining 3.5% – dragging PLUG and FCEL (I’m Long) 10% higher as headlines suggest Tesla to Open Over 30 New Service Centres, Stores in Europe.
The US 10YY is up 5bp and has now closed yesterday’s “gap” as risk aversion retreats — the 10YY is getting upside of the 200dma again this AM. The € has a bid to it, as Eurozone PPI comes in stronger than expected ahead of the ECB’s rate decision on Thursday. The $US has rallied back to the 102 level against the Yen, but the move seems to have stalled there overnight. Overall the DXY is weaker, and back under the 80 level, causing a tailwind for commodities. While Copper has a slight bid to it, Gold is retreating from 4M highs as traders unwind safety trades — and the Crude Complex is off almost 2%, and Corn/Wheat are off 1% as the geopolitical risk-premium retreats. Scheduled Catalysts today include the release of President Obama’s Budget, ISM New York should post around 9:45, a small POMO at 11, and after the bell Fed’s Lacker Speaks on Economy in New York at 4:15.
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