JonesTrading’s Dave Lutz has a quick roundup of what traders are talking about right now.
Good Morning! US Futures are slightly green this AM — led by Tech, Energy and Miners. EU Markets are mixed, with Germany giving back 10bp despite the “progress” made in the Ukraine (Micex up 60bp). Volumes are a bit better, with the DAX trading 25% heavier than 5day averages — The drop in Yields has pressed EM Stocks to 3Y highs, and Asia saw mixed overnight action. The Nikkei added small, but seemed mostly defensive buying — China bounced back from yesterday’s IPO driven smackdown, but one of our overnight traders noted HK was under pressure as MS cut it’s forecast for Macau #s — Taiwan surged 1% in heavy trading, and Aussie popped as Miners staged a solid rally down under. Seems Traders are shifting from USDJPY to AUDJPY, typically set up for a move in the “China” trade, should be good for Aussie Equities and the Miners.
The US 10YY is testing week lows – hopes for more central bank stimulus has Bunds at record Lows as Germany’s monthly GfK survey showed another drop in Consumer Confidence and France pushes hard against Austerity. The Euro bounced off 1Y lows this AM as traders wonder if fresh ECB QE is “built into” the FX. We are seeing a slight bounce in commodities – WTI near week highs into DOE at 10:30 as API data showed a big draw overnight, but key will be Cushing Inventories today. Natty gas is adding 1% as the spot contract expire today, and Gold remains above the 200dma. Scheduled Catalysts today include Metropolitan Area Employment at 10, DOE data for Crude at 10:30, A small POMO at 11, a 2Y floater auction at 11:30, French “jobseeker” data at 12, and the US 5Y auction at 1.
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