Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about before the markets open on Monday:
Good Morning! US Futures are continuing Friday’s rally, adding 50bp as we enter the “unofficial” start of earnings season this week. EU Markets are all rallying sharply, led by the DAX adding 2.2% in decent turnover. It’s a very broad-based rally, with Fins, HC, Industrials, Energy and Tech all 3%+ higher in Europe. The FTSE is jumping 2% on Miners and Rolls Royce #s — while we have mixed action in the 2 main sentiment stocks: Chatter Glencore Takeout had shares nearly doubling in Hong Kong, and sees the miner adding 10% in London Trade. VW, however, continues to spiral downward — losing 4% as it takes out last week’s intraday lows. Over in Asia, China remained closed for “Golden Week” — but that didn’t stop the Nikkei gaining 1.6% in its 1st 4day winning streak in a month. Hong Kong was up 1.6%, with Casinos continuing to rip higher on chatter of fresh Chinese policies, while Aussie climbed 2% as resource stocks led the rally. The Poor US Payroll data has ignited the EM Stocks — with Indonesia and India jumping 2%+.
The US 10YY is up small, testing the air above 2% as investors continue to take profits in global sovereigns — pressing the German 10Y near Friday’s levels. We have a nice bid in the periphery, with Portuguese bonds at a five-month high after their election this weekend. The $US continues to claw back from Friday’s smackdown, making gains against Euro as Euro PMIs post light. The $US/Yen is breaking back above 120, helping fuel risk — while eyes remain on that A$ hovering just above 70 as we await the Aussie Central Bank Decision tonight. Industrial/Chinese commodities are mostly higher, with copper adding 60bp and the Oil complex 1% higher as the street digests the big drawdown in Rigs reported last Friday. Most Grains are higher, while it feels that Yellow Metal continues to be used as a source of funds.
Scheduled Catalysts today include Markit US Composite PMI at 9:45, right when the ECB Publishes Monthly QE Breakdown. We get the ISM Services print at 10am, along with the Labour Market Conditions Index Change. Down in Washington, the Senate and House are both in session — the House is expected to begin voting on the repeal of U.S. crude-export ban, while Hillary Clinton will be unveiling her plans for new Gun Control Measures.