What Are Traders Chatting About Right Now? Markets Are Under Pressure...

Pressure cooker lid stoveWikimedia Commonspressure cooker

JonesTrading’s Dave Lutz has a round up of what traders are chatting about right now.

Good Morning! US Futures are under pressure, led by a 60bp drop in the Russell — but we are outperforming markets in Europe, where the DAX and EuroStoxx are off 1.4% in fair volume. Weakness being driven by several factors: Banks weak as Regulators hit them with $US3.2bn of fines related to forex trading / German Panel of Eco Advisors were bearish on recovery / NATO saying convoy of Russian Tanks entered Ukraine. Transitioning into Asia – While the MICEX is unchanged, the Ruble is getting whacked again. Shanghai added 1% led by brokers on anticipation of the HK Link starting next week, while Japan hits 7Y highs on hopes Abe will postpone a looming tax increase and shore up support for economic reforms with snap elections. The worst market was down under – Aussie was hit for 1%, with heavy losses in the mining sector (Despite Ore unch), and 3 of the 4 big banks trading ex-divvy.

The US 10YY has retreated back below 2.35% as German Yields tested 80bp overnight as the Euros fret negative headlines. The DXY has regained its footing, but mostly against Euro as $US/Y off small, nearing a Y115 test. This headwind for commodities is not helping Oil — With both Brent and WTI nearing off 90bp as Libya’s Sharara field has resumed production. Metals are mixed, with Copper showing some life, up small — while Gold and Silver are both red — Gold nearing a $US1160 test as BOE slashes inflation estimates. We are seeing a continuance of covering in the Grains and Beans, with Wheat jumping 1.5% (Ukraine Headlines helping), and Corn climbing 90bp. Scheduled Catalysts today include MBA Mortgage Apps, Draghi will be speaking at Rome University at 9am (not policy), Wholesale Inventories at 10 ($US/Yields) – Fed’s Kocherlakota Speaks at 12, and 1pm brings the $US24B, 10Y auction. API data for Crude hits after the bell, ahead of DOE tomorrow. CSCO, JCP and NTAP report tonight

Some trades I am watching today — Big Bank deal on the tape, with BBT taking SUSQ for $US2.5B — Regionals may outperform the money centres on headlines / ITB (Builders) had a nice move thru 6M resistance, if it continues, Momentum plyers will follow / REITS outperforming again — Japan’s Property Index climbed 3%, while UK REITS are around unch despite FTSE weakness / Gold Miners (GDX/GDXJ) as a massive short covered yesterday, dislocating higher / A reversal lower in the dollar should be very commodity supportive, as we saw late yesterday — especially in the crowded shorts (Corn). Finally, Congress reconvenes, and Keystone is on the front of the agenda in an effort by Senate Dems to save Mary Landrieu’s seat — TRP, COS, CVE, CNQ benefit — While the US rails are the primary losers

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.