Dave Lutz at Jones Trading has the top topics about which traders are talking about today.
Good Morning! US Futures are looking higher, with the S&P rebounding off that key 200dma level this AM — but both Russell and Nasdaq futures, the hardest hit over the last week, are showing a less enthusiastic bounce. Equity volumes in the USA may be light today, as our Credit market is closed for Holiday. Overseas, the DAX is bouncing 80bp in decent volume, and even the French market is higher, shrugging off the S&P France Downgrade late Friday. FTSE is lagging, as Technology shares remain under global pressure, off 1.4% in early London trading. Russia is bouncing 2% as Putin pulls back troops from the Ukraine border. Over in Asia, Nikkei was closed for Holiday as Goldman Cuts Japan’s Growth Outlook this AM — Shanghai saw more profit-taking despite strong trade data — India bounced from the recent selling there, While Aussie closed off 60bp despite a bounce in the miners — dragged lower by continued selling in Tech and Industrials globally. Emerging-market stocks headed for a six-month low, led by technology and industrial shares as well….
With US Bonds closed, eyes on the Dollar getting hit after Fed Vice Chair Stanley Fisher said US rate rises could be delayed by slowdowns elsewhere. Credit in Euroland remains solid, with no weakness in French debt — interesting, After the Finland downgrade Friday, only Germany and Luxembourg are AAA rated by S&P in the Eurozone. Better China data and a weaker dollar has a slight bid under Industrial metals as well as Ore — but weakness persists in Oil — Brent is off 2.2% and WTI 1.6% as Saudi signals they r fine with South of $US90 – even as low as $US80. Kuwait blowing off Venezuela’s call for a emergency meeting, and Iraq slashing prices to Asian Buyers. “OPEC countries appear to be more interested in defending their market shares at present than stabilizing prices”
Catalysts are light today – ECB’s Praet Speaks in Munich at 8amET, there is NO POMO at 11 — and Fed’s Evans Speaks on the Economic Outlook at 12:30. Some of the catalysts ahead of us later this week, aside from the start of Bank Earnings, includes: ECB’s Draghi speaking several times, and Fed’s Yellen speaks Friday / Multiple FOMC speakers, and the Beige Book from the Fed / Inflation from China, Japan, Germany / Germany’s ZEW / IP from Japan, EU, US / US Advance Retail Sales / Housing Data – Housing Starts and Permits / HYG large Coupon Payment date — Could see re-investment bid.