Dave Lutz of Stifel Nicolaus has a roundup of what traders are chatting about ahead of the U.S. market open:
Good Morning! US Futures have a upbeat tone this AM, with Nasdaq up almost 50bp, and E-Minis up 30bp as AAPL up 1% (Susquehanna comments overriding CS Downgrade). EU Shares 5+ year highs as the DAX is up 40bp despite a weaker ZEW survey from Germany. Volumes across EU are mixed, with some markets trading 25% light to normal averages. Over in Asia, The weaker Yen helped push the Nikkei up 1%, and a fresh liquidity injection from the PBoC popped China 90bp. There was another wave of IPOs in China, 7 of which needed to be halted due to upside volatility. EM Asia was relatively mixed, with focus remaining on Thailand as protests turn violent into their Rate decision tomorrow. Aussie’s market gained 70bp as the big 4 banks rallied, but Miners held the ASX back as Last week’s best performers are under pressure on a sharp drop in Ore prices into China. Banks rallying globally after yesterday’s DB induced hit — DB has recovered 1% of yesterday’s 5% slide. Watch the Transports and Energy Cos on the impending snowstorm on the East Coast — So far 1800 flights have been cancelled, and headlines suggest propane shortages abound. Some Single Stock movers in the US include AA +3% (JP upgrade), NEM +2%, SSYS +2% (CS upgrade), SCTY -3% (JP Downgrade).
US Treasury yields are higher, as there were Block sellers of Treasuries in Asian and London early this AM, but there has been a bid since US traders started manning their desks. The 10YY rests at 2.85% after bouncing off a 6 week low as the Fed begins it’s “Blackout” period into next week’s meeting. A lot of eyes in FX land on the EUR closing south of the 100dma against the $US this week, a first since July. The Yen is also moving lower against the $US as Hilsenrath writes about another “taper” move at next week’s meeting, Ben Bernanke’s final. With the DXY higher, we have a commodity headwind — Gold off 50bp retreating from a 2M+ high, while Silver is hit sharply for 1.5%. Platinum remains resilient, buoyed by the impending strikes in South Africa. The energy complex is well big as another “Polar Vortex” grips the US — With Gasoline jumping 1.5%. Brent has a bid as the Geneva 2 conference on Syria seems to be unravelling, and projections the USA will hit a “production wall” of shale oil from the IEA. The Brent-WTI spread is blowing wider this AM s the spot WTI contract expires, a refiner tailwind. We are very light on the economic calendar today, and all of Washington DC is on leave due to the storm. At 9:30, the IMF announces it’s World Economic output (Chatter UK to be upgraded again, 2nd time in a few months) — A very small POMO operation at 11, and API data tonight — along with earnings from IBM and TXN.
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