Dave Lutz of Stifel, Nicolaus has the top stories that traders are talking about today:
Good Morning! US futures are mixed this AM, rather resilient despite some overnight headwinds — The biggest may have some from Appaloosa’s Tepper, who said “don’t be too fricking long right now” as he is concerned about leverage. Over in Europe, Financials are under pressure as they experience the same headwinds as US counterparts — A flattening yield curve in a falling rate environment. Despite this, the DAX is in the green, and trading on volume 30% heavier than normal as more ECB doves hit the wires. The Ukraine Situation seems to be less of a stress, as Russia’s Micex is up 40bp this AM — and the Hryvnia has a bid to it. In Asia, the Nikkei was hit for 75bp as their GDP comes in very strong, but the Yen is weaker as many feel there was a “pull forward” due to the consumption tax. Japanese Futures are off about 30bp, as BoJ’s Kuroda sounded hawkish yet again last night. While China lost 1%, the Hang Seng popped 70bp as Tencent jumps 7% on earnings (#1 weight in SOCL). India’s market was up again, as investors anticipate the Modi win. Retailers remain in focus, with WMT off 2% on earnings, JCP and JWN #s after the Close. We also hear from AMAT tonight. Also stay tuned as 13Fs are due today, so some single names may move from HF positioning reports.
Global Benchmark Sovereigns are bid again, with the 10YY off 1bp, but holding above yesterday’s lows as the BOE joins the doves. We have the € breaking down as EU GDP came in soft — and the Yen weakening has the DXY jumping over the 100dma to 1M highs, nearing the 200dma where it has failed 2x in 2014. We have weakness in commodities, despite the $US tailwind — Nickel is getting smashed for 7% right now, the commodity had surged 50% in 2 months on supply concerns. Interesting Gold is unchanged, while Copper has a bid despite the Chinese softness. WTI and Nat Gas are under pressure, despite concerns of OPEC shortfalls. We have a handful of scheduled catalysts today, including CPI and Weekly Claims at 8:30, Treasury International Capital Data at 9, Industrial Production at 9:15, Philadelphia Fed – NAHB Housing Market Index and Retail E-Commerce Sales at 10, EIA Weekly Natural Gas at 10:30 — there is NO POMO at 11 — and tonight at 7 Fed’s Yellen Speaks to U.S. Chamber of Commerce in Washington.
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