Stifel Nicolaus’ Dave Lutz has a roundup of what traders are talking about right now.
Good Morning! US Futures are unchanged, holding yesterday’s gains, and even the IWM (Russell) is bid higher, following yesterday’s 2.6% surge. More soothing rhetoric from the Ukraine, coupled with China’s Growth target being unchanged is helping risk sentiment this AM. Over in Europe, the DAX is retreating small in light volume, as investors weigh better than expected economic data ahead quieting doves into the ECB meeting tomorrow. The FTSE is getting hit for 60bp, weighed down by HSBC (#s) — and the energy complex is under pressure as China targets pollution control and their PMI posts light. We have some slight stress in Russia, with their CDS popping towards 9M highs, and their equity market retreating 1% as repercussions for Crimera weigh on investor sentiment. In Asia, the Nikkei popped 1.2% as property stocks flew higher — despite the miner sentiment Aussie shares closed at a 6Y high — and India managed a slight gain as many are equity optimistic into their election cycle. Globally Property stocks and Banks are enjoying the biggest tailwinds.
The 10YY is flat in the USA, as it is now trapped between the 100 and 200dmas into ADP and Beige Book data today. The DXY is up small, as the $US is making gains against both Yen and Euro. Industrial metals are up small, despite China’s light PMI — while gold is off small. We continue to see pressure in the Crude Complex, with Oil off 50bp as API reports inventory builds into DOE data today. Nat Gas is off 1%, despite calls for US exports to increase into Europe, to offset Russian influence. At 8:15 today, we get the ADP employment data — at 10 we get both the Bank of Canada Rate Decision, and US Services ISM — at 10:30 DOE data for the Crude Complex posts, and at 11 we have at decent size POMO operation. The Fed’s Beige Book gets released at 2 — and we have 2 Fed members speaking later tonight — Fisher and Williams.