Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning, and Happy Expiry Friday! US futures are adding some ground, climbing 25bp as retail holds its ground despite GPS. It’s a green sea overseas, as Energy and mining companies led gains across Europe, while Bank Stocks are jumping as Bund and Treasury yields move higher. The biggest lagger remains Consumer discretionary, with Luxury eyeballing Richemont numbers. The DAX is up 80bp, while a rally across the board has the FTSE up nearly 1.3%. Not seeing a huge snapback in the Travel sector yet as EgyptAir cause continues to be sorted. Over in Asia, Aussie gained 50bp, Shanghai popped 70bp led up by property and energy shares, while Nikkei closed 50bp higher. EM currencies are rebounding slightly from yesterday’s whack, but most EM equity exchanges in Asia closed red.
The DXY is hovering around 7week highs, and Yields are higher in both Bunds and Treasuries as the G7 Finance Minister Meeting kicks off. The $/Y is breaking higher, and the greenback is gaining ground once again on the commodity currencies. Despite the stronger $, most metals are bouncing across the board, led by a 1% move in copper, but Silver having a meagre 40bp rebound after the smackdown yesterday. Gold is on track for its biggest weekly declinein eight weeks, as the metal can barely stay green as the $ climbs. Oil shud whipsaw into Expiry today – currently trading just red as some positive headers regarding Nigerian and Canadian outages dance about.
Away from Options Expiry – Very quiet on the Catalyst Calendar today, with CPI and Retail Sales in Canada due at 8:30 — then we get US Existing Home Sales for April at 10. 1pm brings us the Baker Hughes Rig Count, just ahead of the CFTC “Commitment of Traders” data at 3:30. Expect headers from the G7 Finance Ministers and Central Bank Governors Meeting. No idea why I thought it was yesterday, but WTI roll is today at the NYMEX 2:30 close.