Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are chatting about this morning.
Good Morning! US Futures are slightly red, with the S&P barely retreating from recent range highs. Over in Europe, the Greek Rhetoric worsening as EU Fin Min meet today ahead of Greece’s IMF deadline tomorrow (Zero expectations for today) – Athens is off 3%, led by a 7% drop in their banks — causing broader weakness across Europe. London continues to outperform on Election tailwinds, with FTSE up small, but EU Stoxx is off 1% and the DAX 40bp, but volumes are pacing very light (25% recent averages). Fins and Consumer Discretionary are the weakest sectors, with Tech and Materials trying to outperform. Over in Asia, Chinese stocks jumped 3% as PBOC cuts rates over the weekend – Many China internet names limit up as State Council looks to boost cross boarder e-business. Japan’s Nikkei 225 rose 1.3% to 2 week peaks (Despite Toshiba Limit Down) while Hong Kong’s Hang Seng index added 0.6% and South Korea’s Kospi Composite gained 1% – Banks weak again down in Aussie, but Miners help ASX hand near unch
The US 10YY is up 2bp, following German Bunds slightly higher, but the Euro is coming under some pressure, trying to hold 1.15 in early trading. The DXY is holding ground above 95, causing a headwind for commodities. Despite the Chinese cut, Industrial Metals are all under pressure, led bya 50bp drop in Copper — while Gold remains in the red. The Energy complex is mostly red, with Brent off 1% (Despite Saudi King cancelling summit), but Natty continues Friday’s bid from chatter EXC shutting down some Nuke plants (Interesting headlines about an attempted Hack into US Energy Infrastructure hit late Friday — conspiracy theorists think related). The BoE just stayed unchanged (as expected) — and with very light US Data (Only Labour Market Conditions Index Change at 10) — focus will remain on headers from the Euro-Group meet.