Via Dave Lutz at JonesTrading, here's a quick look at what traders are talking about this morning.
Good Morning! US Futures are all in the red, led by a 20bp drop in Nasdaq (New Tech and Bio Tech looking weaker early). London is bouncing 40bp after being closed yesterday, but most of Europe is lower as headlines worsen into the Greek IMF payment due tomorrow. The DAX is off small, with the Fins leading Europe lower, despite UBS flying on #s. Consumer Discretionary shares are the main sector outperforming (#s), but volumes are muted across the continent. Over in Asia, Shanghai hit for 4.1% as headlines suggest a clampdown in margin trading and a fresh wave of $320B in IPOs. Aussie cut as expected, but A$ rallied as it was a “buy the news” event (ASX closed unch). Japan’s Nikkei and South Korea’s Kospi remain shut as part of the Golden Week public holiday.
The US 10YY is off 2bp, and Bund yields are easing slightly despite headlines the EU Lifts Eurozone Growth Forecast. Greek debt is getting hit (and Athens Stocks off 3.5%) as headline angst grows, all of which is contributing to a weaker Euro. The Yen is slightly weaker as US payrolls come into focus – all of which is popping up the DXY basket, causing a headwind for commodities. That said, most are higher, with metals led by a 50bp pop in Copper, and the Oil complex being well bid into US inventory data. Natty gas is falling under some pressure, losing 1% early, and all of the “softs” are getting hit, led by a 1% drop in Corn and Wheat. Ahead of us today, we have Trade Balance at 8:30. At 9:45 we get Markit US Composite PMI ahead of the official ISM print at 10. Fed’s Charles Evans is speaking at 12:25. We get API data for Crude after the close at 4:30 – while Fed's Kocherlakota speaks tonight at 8pm.
