Dave Lutz at JonesTrading has the top topics about which traders are talking about today:
Good Morning, and welcome to Expiry Friday! Dovish tailwinds are propelling the market higher, as BoE’s chief economist (usually hawkish) said overnight — “interest rates could stay low for longer,” reinforcing dovish momentum from Fed’s Bullard comments yesterday. US Futures are up ~1%, led by a 1.4% pop in Nasdaq, despite weaker results from GOOG and AMD weighing. Most of the upside coming from AAPL and Biotechs, along with Semis like QLGC and XLNX. EU markets are responding well in heavy volume, with the DAX up 1% but off the best levels of the morning. The FTSE is lagging a bit as Industrials under some pressure there, but GE’s earnings may provide tailwinds for US counterparts today. Russia’s Micex is up 2% as Putin and Poroshenko are due to meet in Milan today. Was a mixed sea in Asia, as China’s stocks fell on speculation a much-anticipated trading link between Hong Kong and Shanghai will be delayed, while the Nikkei finishes worst week in 6mos by losing 1.4%. Tech Heavy Taiwan fell 1.4%, while Aussie finishes with its biggest weekly gain in two months.
The US 10YY is testing 2.2% this AM, up 8bp from overnight lows as stress comes off from European buying. PIIGS yields have all reversed lower, led by a 75bp reversal in Greek paper, helping the EU fins leap almost 3%. The DXY is slightly weaker, losing ground against Euro, but gaining on Yen. The energy complex is acting well, with WTI and Brent up 1.2%+ despite WSJ reporting that Gulf nations including Saudi Arabia, Kuwait and the United Arab Emirates plan to oppose any cut to OPEC’s oil-production ceiling at next month’s meeting. Despite the global enthusiasm, Industrial metals remain under pressure, while Corn and Soy are acting great this week. Before the open, Fed’s Yellen Speaks at Boston Fed Conference on Inequality at 8:30. This is her last scheduled speaking event until the FOMC meeting — We get Michigan Confidence at 9:55, At 10 we get Housing Starts, there is NO PMO at 11 — at 1pm we get the Baker Hughes Rig Count, and after the close a Possible Moody’s update on Spain & Norway.