REUTERS/John Gress
Morning! Bulls love Tuesdays ---> The market has returned almost 9% ytd on Tuesdays, rallying 86% of time. That trend is intact early, with S&P futures popping 35bp - but Nasdaq futures are up almost 50bp on Chip deals and AAPL's vertical trajectory (I'm Long). Over in Europe, the DAX is jumping over 1%, with trading 20% heavier than the normal averages. DB#'s and release of Stress test scenarios have Fins leading Europe higher. FTSE Volumes are off 20%+, as the first day of a two day tube strike by London underground workers is causing travel chaos. We are seeing stress coming off Ukraine still, with Russia's Micex up 1%, UK Natty on 3Y lows, and a bid under the Ruble this AM. In Asia, Japan was closed for Holiday ahead of BOJ tomorrow - while Stimulus hopes help China rebound back over the key 2,000 level as data showed the slowdown worsening. Aussie lost almost 1% as Miners and Fins were under pressure on falling metal prices and Chinese concerns. In EM today, stay focused on Brazil, as Santander is buying out it's Brazilian unit at a nice premium.
The 10YY is higher, breaking upside of yesterday's peaks, and nearing a 200dma test around 2.72% into the FOMC announcement tomorrow. The Yen is breaking down relative to the $, and Hawkish ECB speakers have € jumping - pressuring the DXY lower and causing a tailwind for commodities. Gold is breaking down under $1300 and the 200dma, while Silver is getting hit for over 1% as risk aversion buying reverses. Metals traders are focused on Iron Ore, which lost over 5% yesterday as China attacked using Ore for Collateral. Both WTI and Brent are elevated into Inventory data the next 24 hours, as we await the re-opening of terminals in Libya. Scheduled Catalysts today include Earnings from BMY, COH, S, BP before the open - CaseShiller Home Price Index at 9, Consumer Confidence at 10, a Decent size POMO at 11, and a 2Y floater auction at 1. After the bell, we get API data for Crude, along with earnings from AFL, EBAY, GNW, MAR, STX, TWTR among others.