Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures are starting under decent pressure again this AM, with the S&P marked off 70bp, led by commodity producers and Biotech. This mirrors sharp weakness overseas, which sees the DAX off 1.5% as Autos hit in Frankfurt (Porsche are 5% weaker, VW 4% and Daimler is down 3.2%. Renault is down 3.9% in France and Italy’s Fiat Chrysler is 3.2% lower) — In London, All eyes are on GLEN, which is off almost 30% as analysts at Investec warned on servicing a “debt pile that is now far bigger than the listed value of the company” — Tech and Yield/Safety plays seem to be the only safe haven early. Over in Asia, Nikkei was hit for another 1.3%, but China and it’s proxies all enjoyed gains — While Shanghai added small, Hong Kong added 50bp, and Aussie jumped 1.5%. Unfortunately tho, keep an eye on those emerging Markets coming unglued — Indonesia and Thailand lost ~2%, Singapore 1.5% and India’s Sensex dropped 1%.
The US 10YY is under pressure, but off overnight lows which saw yet another 200dma bounce as we prepare for 3 Fed speakers today — all voters in 2015. Fed Funds have dropped the chances of a December lift to 42%, as many players realise that the expected antics over the Debt Ceiling fight in December will keep Janet on hold. The Greenback is gaining against most currencies, as Euro hit as Separatists won a big turnout in Catalonia — and concerns ramp over VW Credit. EM Currencies getting whacked, with Malaysian ringgit hitting a 17-year low, while month-end dollar buying weighed on the Indonesian rupiah. With the stronger $US, we should have a bid to commodities — but one is hard to find: All the metals are getting smoked, led by a 2.5%+ drop in Silver, and even Gold is getting hit for 1% despite its haven appeal. Natty Gas is getting a 2% pop, but the Oil complex remains red — with WTI and Brent under Friday’s lows, losing 1.7%+. Wheat and Corn are managing a small bid, but most softs are firmly under water.
Ahead of us today, at 8:30 Fed’s Dudley Speaks on Monetary Policy in New York, and Personal Income and Spending; PCE deflator hits — at 10 we get Pending Home Sales for August, ahead of Dallas Fed at 10:30. Fed’s Evans Speaks on Monetary Policy in Milwaukee at 1:30, and after the bell Fed’s Williams speaks at UCLA on Economic Outlook at 5pm tonight. All 3 Fed speakers are 2015 voters. In Politics, President Obama addresses UN General Assembly at 10am, Meets with India Prime Minister Narendra Modi at 11, and with Russian President Putin at 5:05 tonight. While the House and Senate are in session, there are not many meetings scheduled as the House scrambles toward a leadership vote and all eyes are on the Weds Midnight Deadline for a CR to keep the Government funded.
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