What Are Traders Chatting About Right Now? The Many Catalysts...

JonesTradings’ Dave Lutz has a roundup of what traders are chatting about right now.

Good Morning! The weather on the East Coast may make a mess of the busiest travel day in 2014, but things are looking sunny early at the NYSE – US futures are resting at record levels, adding 20bp. Thanks to the Holiday tomorrow, we do have many catalysts pulled forward into today – initial jobless claims, durable goods orders and new home sales will keep activity flowing early — but expect volumes to drop quickly. EU Markets are stronger, with Germany adding 60bp on the back of more ECB Sov QE chatter — but volumes are abysmal, most major EU markets trading 50% light to normal. Another strong showing in Asia as Shanghai pops 1.5% on rate-cut momentum, hitting a 3Y high, dragging the Hang Seng along with it. Overnight Ore hits 5Y lows, but that didn’t stop Aussie miners from jumping, propelling the ASX up 1%. Volumes in Asia were tracking 20-40% light…

The US 10YY is under some pressure, yielding 2.25% as strong overseas demand drives German 10YY to 74bp, just above the “Flash Crash” low back on Oct15th (US Yields hit 1.86% that morning). The DXY is off slightly as it loses ground to Yen, causing a slight tailwind for commodities. That said, Gold failed AGAIN to retake $US1200/oz, and Oil near 4Y lows into OPEC tomorrow as Saudi and Iran say “No Cut” (but chatter increases of strict quota compliance). Copper is under pressure and near 3week lows, but we are seeing money flowing into Grains and Beans, with Corn and Wheat adding 50bp+ each. Scheduled catalysts today include Durable Goods Orders, Personal Income/Spending, and Weekly Jobless claims at 8:30; at 9:45 we get Chicago Purchasing Manager (9:42 for Paying Subscribers); Univ. of Michigan Confidence at 10; Pending Home Sales / New Home Sales at 10:30; Natty gas Inventories at 12; and a $US29B, 7Y auction at 1.

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