Dave Lutz of Stifel, Nicolaus has a quick rundown of the top things folks are talking about:
US futures are basically unchanged, with E-minis peaking at 1796 overnight. Overseas markets are consolidating around their recent peaks — but volumes remain abysmal, Euro markets trading nearly 30-50% below recent averages. In Asia, Nikkei has a slight bid to it, but traded in heavy volume as it tests multi-decade resistance levels. The Aussie Market your best performer, as the A$ worst currency this week after RBA said to eyeball intervention. Continues to see weakness in the EM on a “Taper” fear — with Thailand losing over 1%. Overall markets pretty quiet, as we bear into a major Holiday week with US Thanksgiving, and the Jewish Holiday of Chanukah — great timing for the MSCI rebalance on the close next Wednesday… Today’s economic events include JOLTs data at 10, A small POMO and KC Fed data at 11; Fed’s Tarullo Speaks on Shadow Banking at 12:15.
Both the Senate and House leave for Holiday today. We do have Robin Hood continuing today, highlights being Tilson/Fink at 8 — A REIT Symposium at 8:40 — Ackman at 9:40.. The US 10YY is off small, but many traders watching the 2-10 yield curve steepen to new peaks, a big driver for US Banks. The DXY is much weaker, with most losses coming against the € as Germany’s IFO comes in stronger than expected. The Yen remains near 4month lows however, so the ‘Carry Trade” will continue to benefit global equities. With the DXY weaker, a natural tailwind for commodities — and we have most metals higher, but given the bloodletting this week, the Metal bid feels like a “dead cat” bounce.
Notably, the Oil Complex under pressure — as signs point to continued dialogue on Iran, and the complex considers the economic impact of the impending Taper. WTI’s discount to Brent back outside of $US15.. David Tepper was interviewed last night —> Sees equities going higher, Market is not in a bubble — but the Taper could hit the market for 5-10%. His play by owning a big percentage of Airline stocks, but still has a large investment in US and EU Banks — Specifically pounded the table on Citi, sees stock near $US70. Appaloosa flipped their TWTR position from the IPO, punting at $US47. Started putting on a Treasury Short, as he sees the Fed Tapering in Q1, but expects it to be gradual — but Central Banks more concerned about Deflation than Inflation.
Business Insider Emails & Alerts
Site highlights each day to your inbox.