Via Dave Lutz, head of ETFs at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures are retreating 30bp and on overnight lows as a bevy of macro headwinds weigh early. It’s a Sea of red over in Europe as the ECB inaction continues to weigh — The DAX is down 50bp as Energy and Bond Proxies retreat sharply on tough German Trade Data, while the EU Fins are bucking the trend, gaining 50bp despite Italian Banks under pressure on Capital Raising Headers from UniCredit. The FTSE is off 25bp as gains in the London banks offset some of the losses in Industrials and Miners. Volumes are heavy in Europe, with Frankfurt trading 50% above normal trends. North Korea’s fifth nuclear test weighed on Asian shares Friday – Aussie lost 90bp as metals fell – Shanghai dropped 60bp, while South Korea’s Kospi was whacked for 1.3%. Nikkei closed flat, while Hang Seng rallied on more chatter of the Shanghai connect.
The US 10YY continues to move upward, gaining 3bp and hitting the highest since June as the doves grow cautious ahead of the Brainard speech Monday, while Bund Yields have moved close to 0% as the continue sell off after the ECB disappointment. The DXY is flat, as gains in Euro and Sterling are offset by losses in the Yen and Commodity Currencies. Ore in China dropped 50bp to 11week lows, weighing on the Metals, with Silver and Gold firmly in the red. The Energy complex is retreating from yesterday’s spike, as WTI drops 1.4% and Gasoline 2.2% – but Natty continues to stay green as a heat-wave grips the North-East. Softs look pretty weak across the board.
Ahead of us today, we get Fed’s Rosengren to delivering a Economic Forecast in Boston at 7:45. With the 15th anniversary of the September 11th attacks falling on Sunday, The NYSE will ring a single bell this morning for a Moment of Silence at 9:20am. At 9:30 the Brookings Institution holds discussion on speeding up economic growth — and at 10 we get Wholesale Inventories, then attention turns to the Baker Hughes Rig Count at 1pm. “Commitment of Traders” data is normally due at 3:30, but may be delayed due to the shortened week.
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