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Via Dave Lutz at JonesTrading, here’s a super quick guide to what traders are talking before markets open on Thursday.
Good Morning, and Good Riddance Q3! US Futures are marked about 70bp higher, but well off the overnight peaks as the Minis got rejected from 1930. This mirrors action in Europe, which saw the DAX open strong, but has encountered nothing but sell tickets since, with sentiment stock VW relinquishing 5%+ gains throughout the session. The same action held true with the FTSE, as Glencore is “only” up 2% after being nearly 7% higher on the open. Financials are a big weight, with DB in the spotlight for all that ails the German Economy. Volumes are not impressive across the continent, with Frankfurt trading 20% light to recent trends. Over in Asia, Hong Kong Closed today and Chinese Mainland exchanges for the next week due to China’s “Golden Week” holiday – but that didn’t stop China proxy Aussie jumping 2% as it continues to rebound on the back of the Miners thanks to KKR/Oz. The Nikkei added 2% as Financials and Materials stocks had a strong session as doves embraced a weak Tankan survey
The US 10YY is up small as investors await Friday’s US non-farm payrolls data, but that seems tenuous as a sharp bid in Germany has driven Bund Yields towards multi-month lows. The DXY is enjoying a decent morning, as the Euro breaks lower as EU PMI posts slightly weaker – but Growth focused assets are gaining ground, led by that Aussie $. Most commodities are stronger, led by a 2%+ pop in the Crude complex as WTI continues to gain ground above that 50dma. The Metals complex is mixed, with “industrial” metals making headway, but that Yellow rock continues to be used as a source of funds as “safety” trades retreat and investors ponder additional QE from the ECB and BOJ. Lumber futures are your worst commodity, losing 1.3% after yesterday’s 10% “Limit Up” session.
Scheduled Catalysts today include Challenger Job Cuts at 7:30 followed by Weekly Jobless Claims at 8:30. 9:45 brings Markit US Manufacturing PMI followed by the official ISM Manufacturing and Construction Spending at 10. We get natty gas Inventory data at10:30, and Fed’s Lockhart at 1, followed by Atlanta Fed’s Williams giving a Outlook Speech to Salt Lake Area Community around 2:30. Throughout the session, we will be getting monthly Auto Sales figures. Down in Washington, the Supreme Court may issue list of new cases it will consider for coming judicial session around 9:30 – The Atlantic and Aspen Institute hold Washington Ideas Forum (Lizzy Speaking, watch Banks), and the Senate Banking Cmte marks up crude-oil export legislation in executive session.