From Dave Lutz at JonesTrading, here’s a brief guide to what traders are chatting about on Thursday:
Good Morning, and a pretty quiet Thursday is upon us. US Futures are adding small to the week’s gains, but remain below yesterday’s peaks. Mixed Bag in Europe, with the DAX climbing 40bp as Rising Oil Prices Buoy Energy Sector, but seeing decent Profit taking in Banks across Europe, with the sector dropping 1.5% after nearly a 7% pop the last 2 days — and Spain’s Banco Popular is getting destroyed on a Rights Issue, weighing on Spanish and Italian exchanges. Volumes are pacing a bit lighter across the continent so far. Mostly Green in Asia, Shanghai added 30bp despite weaker-than-expected corporate profit data – Nikkei added small despite a rip higher in the Yen, while Aussie added 30bp despite another strong day in the Materials sectors.
The DXY is continuing to see weakness, as the Euro rebounds from the week’s weakness — and eyes were on the first minutes of trading in Tokyo, where a large order spiked the yen. Fed Funds continue to rest near recent peaks, while that “Policy Sensitive” 2YY is slightly retreating from near 3M highs ahead of Yellen tomorrow. With the weaker $, we have a tailwind for commodities, and the Metals complex is flying early despite Ore losing another 2% in China — Silver and Platinum adding 1.5%, while Gold is trying to bounce from 2M lows. Brent broke upside $50, and WTI is adding to 7M highs as Nigeria instability worsens (CVX terminal attack overnight). Natty gas is the outlier to the downside, losing nearly 2% ahead of inventory data later today. Softs are higher across the board, led by a 1%+ pop in Soy and Wheat.
Ahead of us today, we get Weekly Jobless Claims and Durable Goods Orders at 8:30, then the flying homebuilders will be looking towards the Pending Home Sales for April at 10. We get Natty Gas Inventory data at 10:30, then Kansas City Fed Manf. Activity at 11 — just before Fed’s Powell Speaks about Economy at 12. At 1pm we get the last Treasury auction of the week, with a sale of 28 Bln 7-Year Notes. At 2:30, the spot Natty Gas contract rolls with the close of NYMEX trade. Down in Washington, Airport and airline executives testify before House Homeland Security subcmte hearing on ”Long Lines, Short Patience: The TSA Airport Screening Experience” at 9am, while CDC Director Tom Frieden discusses Zika at National Press Club at 12:30.
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