Dave Lutz of Stifel Nicolaus has a roundup of what traders are chatting about ahead of the U.S. market open:
Good Morning, and welcome to Central Bank Thursday! US Futures are higher, as chatter an Asian buyer of $US1B US Equity futures came into the market around 4amET. There is some focus on our 5day losing streak, but WSJ highlights it is a non-event. E-Minis are up 30bp early, ahead of the ECB Rate Decision (No Change expected at 7:45, but loose chatter they may cut — BoE stood pat this AM). The Euro Markets are on strong footing, with the Stoxx up 50bp, and DAX 40bp in heavy trading. EU Banks are up another 1% – they have now surged 7% to start 2014 as Yields in the PIIGS continue to trend lower, and Basel gets watered down. Over in Asia, The Nikkei was whacked for 1.5% as the Yen caught a bid, and China lost 1% as more focus on IPOs and the PBoC’s tightening policies. Indonesia was flat as their Central Bank did not move rates, but Korea did to react well to no change, the Kospi hit for 70bp as the Won continues to catch a bid against Yen. Single Stock movers in the US include M up 6% (earnings), JCP up 4% (Piper Upgrade), MCD up 2% (MS Upgrade). Losers include BBBY off 10% (earnings), and TWTR off 2%, and nearing y’day $US58 lows as Cowen starts with a sell. TWTR now has 11 “Sell” ratings, and only 6 “Buys”.
The 10YY is off small, and remains under the 3% level into our NFP print tomorrow. The DXY is under pressure against the Euro — but the Yen remains weak to the greenback. Overall we have a tailwind for commodities — Lumber is gaining 1.5% (Has been crushed since Christmas), and Gold is up small, adding 20bp and near session highs (Despite Moody’s cutting forecasts and warning on the Miners). The Energy complex is higher, with Brent jumping almost 1% as supportive headlines persist from Libya, Iraq and Sudan — while WTI’s discount has gone past $US15, out $US3 this year. Copper is a standout loser, off 1% as China continues to cramp down on Shadow Financing. Catalysts today include the ECB Decision at 7:45 (Presser at 8:30) — Challanger Job Cuts and Weekly Claims at 8:30 — Philly Fed and a House Monetary Policy Subcommittee Hearing on Fed Bond Buying at 10 — Natty Inventories at 10:30 — a very small POMO at 11 — 30Y auction at 1, and Fed’s George Speaks on Economy at 1:30. AA Kicks off earnings season post close.
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