Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about before markets open on Tuesday.
Good Morning! US futures are starting under some pressure, with the S&P marked off 30bp — While Earnings from IBM cause angst, it’s the sellers over in Europe that seem to be in control early. Solid euro zone bank lending data cooled expectations of ECB easing this week, so we have EuroStoxx off 70bp as doves retreat. Luxury names continue to weaken as Swiss watch exports into Asia collapse, and a retreat in the commodity complex has materials and miners under pressure. While in the red, Financials are still outperforming the broader market, and Tech remains well bid on the back of further M&A (SNDK). Watch healthcare, as Actelion’s results sparked buying in Europe, and a $US7B deal (TMH/AMSG) hits headlines in the USA. Over in Asia, Shanghai rallied 1.2% to a fresh 2month high — the Nikkei rebounded from Monday’s weakness to gain 40bp — Hong Kong was bogged down my Macau names again – Aussie fell 65bp as Commodity stocks came under pressure and banks were hit on capital headlines, and EM is seeing some slight profit-taking.
The US 10YY has shot off overnight lows, and is moving to test yesterday’s highs around 2.05%, but we are seeing some “Debt Ceiling” stress coming off as November Bills are retracing some of yesterday’s losses. The DXY is under pressure as the Euros cover the common currency, and Aussie Minutes bid up the A$. The Canadian $US is unch after weakening into their election results, and $US/Y is moving to test 120 again it seems. With the weaker $US, we have a bid under Gold, popping back over the 200dma, but most other metals are firmly red. While Natty gas is jumping 1.7% on cold weather in the NorthEast — the Crude complex is not regaining any of yesterday’s losses into expiry of November WTI contracts today. Softs are mostly bid, led by Wheat popping 60bp as it tries to rebound from a 7% smackdown in the last week.
Scheduled Catalysts today include Housing Starts and Building Permits for September at 8:30 – Fed’s Dudley, Powell Speak at Market Conference in New York at 9 — and Fed Chair Yellen Makes Brief Welcoming Remarks at the U.S. Department of Labour at 11. After the close we get that API data for Crude at 4:30. Down in DC, the Senate and House are both in session — at 10:30 Sen. Chuck Schumer, D-N.Y will do some fear mongering over the budget, and at 7:30 tonight House Republicans hold a special private conference meeting on October agenda, on topics including debt ceiling. Earnings after the close include DFS, YHOO, ACE, ILMN and CMG.