Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures are in rally mode, led by a sharp bid continuing in that Commodity complex. Oil is breaking higher on US output drop, Saudi and Russian discussions, Syrian Angst, Weaker Dollar, and a surprise draw in Inventories — while the XME (Metals and Mining ETF) is marked up 5%+ this AM — Gold miners acting great, FCX up another 3% on yesterday’s headers, MS bullish comments — and those Coal miners are not done with their squeeze. Over in Europe, the DAX is gaining 1% as the Auto sector jumps on the back of Berenberg’s upgrade and recall headlines out of VW — propelling the Consumer Discretionary sector 3%+ higher in Frankfurt. In London, the FTSE’s move is more subdued as TSCO LN cuts its divvy, weighing on retail and advertisers. Only the Swiss Market is in the red as Roche and Novartis get hit – Healthcare still unloved today, so watch for the shorts to target that sector. Over in Asia, all the top shorted names rallied hard in Hong Kong — propelling the index to a 3%+ gain — The Nikkei added 70bp as the BOJ was unchanged as expected — Very bullish reversal in Semis yesterday will continue as Samsung jumps 9% on #s — and EM was on FIRE today – Singapore, Taiwan, Malaysia and Jakarta all up ~1%+. I see no Emerging Market in the red in Asia.
The US 10YY is breaking upside of yesterday’s highs of 2.07% right now, and with that nice move in Commodity stocks and Autos – have to imagine the boys will be scrambling to cover HY shorts again. The $US remains near yesterday’s lows despite weakness in Euros as German IP fell sharply — Gains in the Ye weigh (watch $US/Y 120) — but that “China” trade is on with the Aussie $US leaping over 72c to the Greenback. Focus remains on the bid in Commodities, with Copper gaining 1% and Gold 60bp — and that bid continues in Oil – WTI bearing down on $US50 as API data last night showed a 1.2M barrel draw against expectations of a 2.2M build. Airlines will have another tough go in the States. Scheduled Catalysts today include DOE data for Crude, Gasoline and Distillates at 10:30 — a $US21B 10Y auction at 1 – Fed’s Williams Speaks at Gonzaga University in Spokane at 2, and we get US Consumer Credit at 3pm.