Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now:
Good Morning! US Futures are recovering from yesterday’s weakness, with the Russell up 70bp and SPX 50bp. This mirrors broad sharpness overseas, with the DAX up 1.3% as financials, tech and discretionary shares lead to the upside in decent volume as we await Mario. Insurers jumping in London led by Prudential’s divvy bump, but the FTSE is only tacking on 50bp as energy shares lag the rally. Over in Asia, Shanghai dropped 1.4% as steel producers plunged sharply, the Nikkei only lost 80bp despite the sharp move yesterday in the Yen, Aussie jumps 1% as Healthcare and Big Banks staged a sharp rally, while most of EM Asia closed slightly lower in light turnover. High focus in Asia on China CPI/PPI prints hitting tonight.
The Wild ride continues in JGBs — 30’s saw their yields jump 24bp as heavy selling emerged, wiping out the gains from Yesterday as liquidity was scarce, helping Bund and Treasury Yields recover some of yesterday’s moves. Ahead of ECB tomorrow, the Euro under 1.10 as the DXY bounces sharply from the 200dma, while C$ is higher ahead of BoC later this AM. The Metals complex is mixed, with Nickel, Zinc and Copper seeing upward moves despite Ore dropping almost 9% overnight. Wild story in FT saying a Flower Show in the Chinese industrial city of Tangshan was the cause of the surge Monday. Gold is under pressure as haven flows reverse and the $ gets some upward mojo, but equities are focused on that Energy complex which sees Brent 2% higher as reports emerge of a Oil producer meeting in 2 weeks. Natty Gas is continuing to see shorts cover, popping the contract another 1% despite flip-flops being dusted off on the East Coast.
Ahead of us today, we get the Bank of Canada Rate Decision at 10 am, right when US Wholesale Inventories data is released. At 10:30, we get the DOE data for Crude (API came in at a build of 4.4mbbl — Above the streets expectations of 3.5M), and at high noon World Agricultural Supply & Demand Estimates (WASDE) hits. 1pm the US Treasury is auctioning off $20B in 10’s.