Via Dave Lutz at JonesTrading, here's a quick guide to what traders are talking about this morning.
Good Morning! US Futures higher, led by Russell as more hawkish re-positioning occurs in Treasuries (ADP Employment and Yellen all before the Open). Nasdaq is lagging (#s, EU Regulatory headlines, Higher Rates = Lower buybacks). Keep an eye on Biotech, “risk off” has weighed heavily here – but M&A this morning as ALXN pays a double for GEVA ($8.4B). The FTSE is unchanged as UK Election concerns sideline buyers, while the DAX is up 1% led by Financials as Greece makes latest IMF payment (Athens off small). Over in Asia, China’s service sector activity comes in at its best level of the year, but Shanghai sold off another 1.2% on margin clampdown fears. India’s Sensex the worst hit in 4 months, led by Banks and Outsourcers – while Aussie banks got smoked, hitting the ASX for 2.3%. Japan was still closed for Holiday ...
The 10YY is just above 2.2%, but the curve steepening sharply again as the street positions for a blowout NFP print Friday. Bund Yields up another 7bp on the day (wow) as inflation metrics continue to rise globally (Oil). The DXY is under water tho, as the $ loses ground to Yen after failing 120 in the overnight. Euro has slight legs above 1.12. Despite the tailwind for commodities, Metals have all reversed lower, led by 70bp+ drops in Copper and Silver. Oil is up 2%+ however, as API showed a draw in inventories, and Saudi raises selling prices (y’day). At 8:30 this AM, we get the ADP Employment Print, just before Fed's Yellen, IMF's Lagarde Speak on a Panel in Washington at 9:15. DOE data for Crude hits at 10:30, then we get a tag-team of FedSpeak - George Speaks on Credit Markets Panel at 1:15, while Fed's Lockhart Speaks on Monetary Policy at 1:30.
