Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about right now.
Good Morning! US Futures are popping to the upside, with the S&P adding 25bp early despite a sharp bid in Bunds reappearing. We have broad strength across Europe, with the DAX adding nearly 2% as German manufacturing orders rebounded sharply — telecom, Tech and HC are all up 2%+ in Frankfurt. Miners are weighing down the FTSE tho, with London adding only 50bp. Volumes are light across the continent, with the UK trading 25% below normal trends. Aside from China, a sea of green in Asia, with the Nikkei snapping a 6day losing streak in the lightest turnover of the year. Aussie climbed 50bp as the big banks rebounded, but Shanghai hit 8month lows as it lost 2.8% – Heavy chatter of margin calls in the commodity futures space. India shot 2% higher on no apparent news.
Bunds are seeing serious inflows, driving the German 10YY down toward 13bp early. Despite this, US Yields remain near unchanged, hovering just below 1.78%. That $ continues its upside rebound, making against against Euro and Aussie, and the Yen is getting slammed on further jawboning from Tokyo. Metals are all getting whacked – Copper 1M lows as Ore smoked for 6% in Singapore; Rebar hit for 3%+ in China as Chinese exports dropped more than expected. The Oil complex remains bid tho, as the FortMacFire still spreading, and investors digesting the removal of Saudi’s Ali al-Naimi over the weekend. Softs are showing a small bid, led by the Grains.
At 9am today, we have a Eurogroup Meeting of finance ministers to discuss Greece. At 10am we get he US Labour Market Conditions Index Change, while just before noon the Bank of Canada Markets Chief Discusses Bond Market Liquidity. At 1pm watch the banks, as Fed’s Kashkari (non-voter) speaks in Minneapolis.
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