Via Dave Lutz at JonesTrading, here’s a quick look at what traders are chatting about this morning.
Good Morning! US Futures are retreating from all-time highs this AM, with Nasdaq off 25bp despite M&A headlines (ENDO/PRX for $US9B and NY Post saying ALTR/INTC heating up again). Europe is soft despite a bid from Autos and commodity producers — with the EU Stoxx off 50bp as Financials are broadly lower on more Greek headaches (“Endgame nears for Tsipras” headlines have Athens off 3%). The DAX is up small with the Autos running higher — but volumes are light — most markets pacing 20% lighter than last week). Over in Asia, China hit on rapidly deteriorating house prices — Shanghai lost 60bp, and Hong Kong 90bp – Tokyo neared a 3week high on solid earnings from Japanese banks — and Aussie lost 1.3% as eyes were on South32, a global mining company spun off by BHP Billiton, opened toward the lower end of market expectations and closed just off lows..
The US 10YY is higher, following an upward move in German yields — seeing both global benchmarks adding about 3bp. The US$ has a nice bid to it, gaining against Euro, Yen and Aussie — causing a headwind for commodities. Crude Oil is higher, led by a 1% pop in WTI — but both well off highs of the overnight. Headlines “Islamic State seized control of Ramadi” has Brent up 2% early, but it has surrendered all of those gains. Despite the higher $US Gold is holding last week’s bid, and Silver is adding 40bp as CFTC data shows speculators getting more bullish on those metals. Watch Wheat — it’s jumping 1.5% and we have a very crowded short position in the grains. ECB Publishes Asset-Purchase Data at 9:45 — and we get the start of heavy housing data this week with NAHB Housing Market Index at 10. This week brings Heavy Fed Speakers, including Janet on Friday; the BOJ meeting + Kuroda Presser; Fed, BoE and Aussie Minutes; Germany’s ZEW and IFO Surveys, plus their GDP — and Graduation at the US Naval Academy in Annapolis.