JonesTrading’s Dave Lutz has a round up of what traders are talking about right now:
Good Morning! Equity Futures are starting on the back foot, led by a 25bp drop in S&P as trading is globally light into the September 11th Anniversary (Moment of Silence at 8:46 and 9:25aET). The DAX is off very small, despite EU sanctions coming into force tomorrow — but the FTSE remains weak as more Scot independence headlines mount into their referendum next week. Spain’s market is the weakest again in the EU, as “Catalonia National Day” has their bond market getting hit again. Russia’s MICEX is seeing some weakness, but the Cease Fire still holds. Over in Asia, the Weaker Yen propelled Nikkei to 8M highs, While Shanghai was under pressure as Heavy shorting in China Mobile as AAPL won’t immediately roll out iPhone 6 in China. HK off small as Tencent’s overnight bounce was sold for BABA, while Aussie lost small as the Miners were hit on dropping Ore prices.
The US 10YY is off 2bp, as investors rotate from German 10’s on the differential, while that “Policy Sensitive” US 2YY is retreating from near 3Y highs. The Dollar marched above the ¥107 mark overnight, while it lost small against Euro and Pound. Drop in China CPI and PPI seems to be pressuring Commodity prices, with Copper off 1.5 — and both Silver and Gold taking out recent lows. The Oil complex under pressure again, despite the ramping of war drums in the Mid-East as IEA slashes demand forecasts — both Brent and WTI have lost another 1.2%. Stay focused in Grains ahead of WASDE data at 12 today — Corn and Wheat continue to get hit, off 50bp+ each. Catalysts ahead of us today include Weekly Claims Data at 8:30, Freddie Mac Mortgage Rate Survey and the week’s largest POMO at 11, WASDE Data at 12, 30Y Auction at 1, Monthly Budget Statement at 2, and ECB’S Draghi Speaks at Event in Milan at 3