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Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about right now:
Good Morning! US Futures are resting above yesterday’s highs as traders gear for a 3day weekend in the States. Big Tech continues to lead, with Nasdaq adding 20bp early. It’s a mixed bag in Europe tho, as the DAX climbs 20bp as Financials and Tech rally, while Energy is lagging, but moving off lows as Crude turns of the floor. The FTSE is off small despite another decent day for the big miners, weighed down by healthcare shares. Volumes are very light across the continent tho as markets await Yellen today – most exchanges are trading 20-40% light to recent trends. Over in Asia, Shanghai slid small on slower China industrial profit growth, posting longest weekly losing streak since 2012 – but Nikkei gained 40bp, while Aussie closed at a 9month high on the back of the big banks. EM Asia all closed higher in light turnover.
It’s early, but the 10YY pinned to yesterday’s lows as nothing incremental comes from G7 headers. Durable goods data yesterday spooked the Hawks a bit – Fed Funds at a 28% chance of a hike in June, down from 34% yesterday AM. The DXY is pretty flat, making gains against Euro and Yen, but losing some ground to some commodity currencies notably the Aussie $. Metals are mixed – Ore slumped another 3% in Dalian, but Copper is 70bp higher this AM while Gold is unchanged. WTI is off about 80bp, and in a battle to stay upside $49. Natty gas is adding to yesterday’s weakness, while most of the softs are weaker.
Ahead of us today, we get 1Q US GDP at 8:30, followed by U. of Mich. Sentiment at 10. While the Energy complex will focused on the Baker Hughes Rig Count at 1 – then at 1:15 we get the Main Event, where Fed’s Yellen to Speak at Harvard’s Radcliffe Day (No Q&A it seems, and don’t think any text released prior). At 3:30 we get the CFTC’s “Commitment of Traders” data. I’m not publishing “What Traders are Watching” today as I am scrambling around before an early afternoon departure to the Northern Neck of Virginia. I hope everyone has a safe and enjoyable long weekend with friends and family!