Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures are in rally mode, rebounding near yesterday’s highs. Russell is gaining 50bp, outperforming SPX as the $ gains. Over in Europe, a sea of green as the DAX climbs 1% as IWIM every major group rallies, led by a 1.5% pop in the Fins. London is lagging slightly, up only 70bp as weakness in the Energy sector weighs on the FTSE. Volumes remain abysmal, with most exchanges trading 20% light to recent trends (Yesterday was the 2nd slowest for 2016 in the USA). Energy and materials shares sank across Asia as shares dropped near 2 1/2M lows – Sydney lost 40bp as Commodities and banks struggled; Shanghai dropped 80bp as more lockups were eyeballed, and Nikkei lost nearly 1% as exporters like Kubota were whacked — it was the lightest turnover of the year in Tokyo. Most EM Asian markets closed solidly red.
Fed’s Harker (non-voter) was hawkish last night – Fed Funds at 32% for June Hike, while that “Policy Sensitive” 2YY rests at 2M highs. The DXY just off 8week highs as ZEW ‘expectations’ survey collapse and Sterling leaps as “remain” camp gains further ground, while Dovish headers from Aussie Central Bank whacked the A$. Metals are mostly red as Ore dropped another 2.5% in China to a 10month low — Rebar hit for 3%. Gold is on 1M lows as the $ weighs, but Copper is showing some life, climbing nearly 1% early. Crude still weakening as Iranian comments yesterday weighed and Oil Sands re-starts eyed, while Natty gas is rebounding from yesterday’s sharp whack. Softs look red across the board.
Ahead of us today, the ECB Publishes Financial Stability Report at 8 — while we get the Conference Board China April Leading Economic Index at 9am (odd time) — US New Home Sales for April and the Richmond Fed Manufact. Index hit at 10am. At 11:20 the US Treasury to sell $20B in 52weekers, ahead of their $26B, 2Y auction at 1. At 2pm the JonesTrading office here on Spa Creek will start shaking — we have 2 hours of the Blue Angels practicing for tomorrow’s flight demonstration on the Severn River — we have Graduation at the Naval Academy here in Annapolis this week.