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Good Morning! US Futures are under pressure, led by a 30bp retreat in the Nasdaq. Once again, US markets are well outperforming the crowded Europe long, with the DAX off 1.5% in heavy turnover. Europe woes driven by Greece (Officials said the revised Greek plan is a vague rehash of earlier proposals and is still not considered credible - Greek debt getting hit) and Russia (Putin warned of fresh Ukraine sanctions). Financials and Tech are the worst hit, losing nearly 2% as volumes near 150% normal in Germany. Over in Asia, EM particularly battered - Jakarta Composite in Indonesia fell 2.3%, an eighth loss in nine sessions, to an 11-month low. The Philippines' benchmark index slipped 2.2%, a fourth straight decline, to its lowest since January. Singapore stocks fall for fourth day in regional rout as investors prepare for US Hikes. HK/China just risk off. Profit taking. LO selling despite weak CPI readings that should have had doves buying; Aussie lost ground for the 6th straight session - and headlines that Hong Kong issues "red alert" against South Korea travel due to MERS worries weighs on investors' minds..
The US 10YY is off small, with the Front end of coupon curve under pressure as we head into first leg of this week's supply ($24Bln 3yr at 1pm). The $ is basically flat, making gains against Euro this AM, but losing ground against Yen as the "Carry Trade" retraces off 17 highs. With the $ weaker, we have a bid under commodities - with all the metals bid higher, and a 2%+ move in the Crude Complex ahead of Inventories tonight (Russia, TX investigating XOM over Quakes). We get the JOLTS Job Openings at 10. Not expected to have a big impact. The 3Y auction at 1pm and heavy corporate supply anticipated will keep a lid on Treasuries. MSCI expected to announce whether it'll partially include China A shrs in Emerging Markets Index shortly after 5pm ET tonight.