Pages

Tuesday, May 3, 2016

Here's a super-quick guide to what traders are talking about right now (SPY, SPX, DJI, IXIC, TLT, TLO, USD, DXY, GLD, GLX)

[Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 2, 2016. REUTERS/Brendan McDermid]Thomson Reuters From Dave Lutz at JonesTrading, here's a super quick guide to what traders are talking about right now: Good Morning!  Some sharp overnight moves in currencies and a dovish flush towards Treasuries have US Futures deep in the red early.  Russell is losing 1% as the DXY falls to 16month lows, while S&P is down 70bp.  This mirrors broad weakness across Europe, which sees the Miners whacked in London – Anglo off over 8%, Glencore 5%+ and sliding lower as Commodities drop and China’s PMI misses.   Banks are under pressure in Europe on UBS #s, and coupled with weakness in exporters like BMW has the DAX down nearly 2% and approaching 50/100dmas.   In Asia, Shanghai jumped 1.8% in thin trade as they returned from Holiday despite weaker PMI data, while Hong Kong was hit for over 1% - Aussie jumped 2.1% to a YTD high as the Reserve Bank cuts rates to a record low – but miners closed in the red.   Thankfully, Tokyo closed till Friday.  Stops going off in Bunds pressing German 10YY down 5bp – hitting the US10YY under 1.8% in the early go and flattening the US front-end sharply.   The Greenback remains in swandive formation, hitting 15-month low against Yen near $/Y 105.  Euro advanced for a 7th day in its longest winning streak against the dollar since 2013, as Lifers in Japan unwind €/Y hedges below 122.    Fed Funds collapsing to a 12% chance of hike next month the culprit here.  Despite DXY whack, it feels like that commodity seller from yesterday still around.   Gold unable to surmount $1300, while Oil drops 1% into Inventory data tonight.  China PMI miss hitting commods, with Ore getting hit for 4% and Copper down 1.5% - Growth trades are accelerating to the downside.  Ahead of us today, we get Vehicle Sales for April released throughout the session – at 9:45 we get ISM New York, followed by our 1st of 3 Fed speakers today:  Fed's Mester (Hawk, Voter – Possible dissenter) Moderates Panel on Financial Markets at 10:30 - Fed's Williams (Non-voter, Neutral) Speaks with Bloomberg Radio at 2, while Fed's Lockhart (Non-voter, Neutral) Speaks tonight at 7.   Right after the equity close, we get API data for Crude at 4:30.   While the Senate and House are not in Session, the Federal Reserve set to propose so-called stays on derivative contracts that would prevent counterparties such as hedge funds, insurers and other companies from immediately pulling collateral from a failed bank.   Indiana has its Primary tonight, and we shud wake up tomorrow to Donald being the Nominee - The latest WSJ poll shows Trump with a 15-point lead. NOW WATCH: FORMER GREEK FINANCE MINISTER: The single largest threat to the global economy


READ THE ORIGINAL POST AT www.businessinsider.com