Via Dave Lutz at JonesTrading, here’s a super-quick guide to what traders are talking about right now:
Good Morning! US Futures are under some pressure as Safe haven assets in demand — Bunds, Treasuries and Gold all tracking higher. Nasdaq is outperforming, while the bigger caps are under pressure on DIS (35 of 50 down DJIA points). Sea o’ red in Europe, with the DAX off nearly 1% and flirting w/ the 50dma in average volume – Banks lead to downside in Europe, with the FTSE Italian bank Index off over 3% and German Lenders giving back much of yesterday’s gains. The FTSE is outperforming, losing only 10bp as the Miners in London stage a rally. Over in Asia, Shanghai rose 20bp, Nikkei added small while Aussie rose for a 5th session on the back of the commodity companies. Pretty much all of EM Asia is selling off yet again..
With the Bund 10YY testing yesterday’s lows near 11bp, we have the US 10YY breaking under 1.75% early. The $ is retreating from a 2week high as Euro gets back upside 1.14, with the Periphery tightening on strong Spanish 50Y sale – while the Yen gathers some upward mojo after the recent weakness from Aso jawboning. With the weaker $, we have a tailwind for commodities, and China trade saw a Big rebound in Rebar, jumping 6%, while Ore snapped a 6day losing streak — Metals all responding in kind, with Silver nearing +3%, and Copper, Platinum and Gold all 1%+ higher. WTI just ripped thru y’days peaks, as Libya and Nigeria outages outweigh heavy US Inventories – API showed a build of 3.45m (Bloomie expectations were at 750k), while Cushing build of 1.46mln in line with Genscape expectations. A Build in Gasoline was bigger than expected. Softs are continuing yesterday’s rally, with Corn and Soy adding 50bp+.
Very quiet day of scheduled catalysts, with UK’s GDP Estimate at 10, the DOE data for Crude, Gasoline and Distillates at 10:30. 1pm brings a $23B 10Y auction from the US Treasury, followed by their Monthly Budget Statement at 2. Down in Washington, Energy Sec. Ernest Moniz speaks at 8:30, Energy Information Administration chief Adam Sieminski speaks at 9:30, at 10:15 House Energy and Commerce subcmte holds hearing on daily fantasy sports web sites, while FCC Chairman Thomas Wheeler and multiple FTC chairs testify before Senate Judiciary subcmte on proposed FCC privacy rules at 2:30. EM Focus will be on headers from Brazil’s Senate, which begins its vote to proceed with Dilma impeachment, widely expected to pass.