Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking about before the market open on Thursday:
Good Morning! US Futures are starting under pressure, with the S&P off 30bp from yesterday’s close. Commodity Stocks seem the downside leaders, while Tech may remain bid in the wake of M&A chatter (Dell/EMC this AM). Over in Europe, the DAX is up 15bp – but focus has been on shares of Deutsche Bank, after getting whacked for 6% in late US trade last night, now in the green as Moody’s upgrades the German Banking Sector. Autos remain bid, with VW up 3%, but those Miners are lagging in London, with GLEN off 3% as the market digests the week’s surge. Overall Consumer Discretionary shares acting among the best, while angst continues about Divvy Cuts in other places. Over in Asia, Shanghai climbed 3% and Shenzen 4% on their first session back in a week. Internet and software companies led the gains – The Nikkei was hit for 1% as Japan’s core machinery orders post much weaker – the KOSPI outperformed as Samsung continued to lead Tech gains, while Miners +1.6% supported Australia markets.
The US 10YY is under pressure, testing yesterday’s lows near 2.03% as yesterday’s auction showed strong buying from abroad. This mirrors strength in Bunds, which has the German Yields approaching 55bp. The DXY has been under pressure all morning, but the Euro started reversing on real Bad German Export #s – and that Yen has a bid as the $ falls below 120 against. Despite the weaker $, Industrial metals under pressure – led by Copper dropping 1.5% and Silver 2.5% – dragging Gold into the red, while the Crude Complex is adding to yesterday’s gains slightly. Eyes will be on Natty Gas – which is in the red ahead of storage data later this AM. Softs are mostly under pressure save Wheat, which has been a sharp lagger of the grains this last week.
Scheduled Catalysts today include Weekly Jobless Claims at 8:30, followed by the 1st of 4 Central Bank Speakers at 9:30 when Fed’s Bullard speaks at a symposium on Savings. We get that Natty gas Inventory data at 10:30, then focus shifts toward the 1pm auction of 30Y bonds – right when Fed’s Kocherlakota speaks. The “Main Event” is at 2pm, when the Fed Releases Minutes from Sept. 16-17 FOMC Meeting, and BOE Governor Mark Carney speaks. At 3:30, Fed’s Williams Gives Outlook Speech in Spokane – and of course AA “kicks off” earnings season after the close. Down in Washington, at 10 a House Oversight and Investigations subcmte holds hearing on Volkswagen emissions scandal.