JonesTrading’s Dave Lutz has a roundup of what traders are chatting about right now.
Good Morning, and happy “Quadruple Witching” Friday – US Futures are higher, led again by Technology as Nasdaq rallies 35bp – however Headlines “ECB considers making weaker euro zone states bear more QE risk” has taken the wind outta the EU rally in the last hour, knocking Germany into the red by 40bp in heavy volume. Many of the PIIGs markets getting hit much more sharply, with Spain and Italy off 1.4% and falling quick. The MICEX is under pressure, but the Ruble is stabilizing, and German Consumer Confidence comes in strong — so this is ECB driven. Over in Asia, Shanghai jumped another 1.7% as doves grow louder, the Nikkei jumped 2.4% as the Yen fell, and Aussie strongest day in 18mos – Miners acting well overseas, while Roche #s weigh on Healthcare
The 10YY is holding yesterday’s gains, resting just above 2.2%, while the treasury curve is mixed after yesterday’s steepening. Bunds didn’t have quite the selloff we saw in Treasuries yesterday, and they are well bid again this AM near 60bp. The $US is making headway against both Euro and Yen (Nothing unexpected from BOJ), so the DXY is moving to challenge 2014’s peaks at 89.55 — a headwind for commodities. The Oil complex is rebounding into CME expiry today for WTI, with both benchmarks gaining 1.5% despite the CME raising margins on Coal, Crude, and Natty. Natty gas is off small, while Wheat is retreating quickly from yesterday’s Russia spike. Reminder – All the main State Street ETFs go Ex. Divvy today. SPY, QQQ, DIA, XOP, XLE — and we will have a few Fed headlines, starting with Fed’s Evans at 10, the Kansas City Fed Manf. Activity index at 11, Fed’s Lacker Speaks on Economy at 12, and Energy players will be focused on the Baker Hughes Rig Count at 1. “Commitment of Traders” data hits at 3:30.