Here's a super quick guide to what traders are talking about right now
Good Morning and welcome to Jobs Week! US Futures are starting mixed this AM, continuing a theme which sees S&P up small but the Russell lagging. European markets are mostly green, led by a 90bp pop in the DAX with EU Banks leading as Commerzbank returns to paying a divvy and Greek Stress Test results not as bad as feared. Another Strong airline report being met with sharp selling as Ryanair drops 4%+, and Miners weigh on FTSE, with Glencore and BHP under pressure as China PMI comes in light - pushing London down 40bp in light Volume. The standout market in Europe is Turkey, which sees markets up 5%+ as Erdogan's party sweeps back to power with a surprise win. Over in Asia, it was a sea of red thanks to weaker China data, hitting Shanghai for 1.7% - while Nikkei fell 2% as investors reacted toFriday's BOJ - Financials and utilities weighed heavy (Japan closed for Culture Day tomorrow). Aussie fell 1.4% as grocers continue to reel from Woolworths last week - while most Emerging Markets closed mixed.
The US 10YY has shot back to test Friday's highs near 2.17% and the "Policy Sensitive" 2YY is climbing to 75bp and December Fed Funds show a "Coin Flip" as we await a slew of Fed Speakers this week, including Janet on Wednesday. The Greenback is mixed, as the Pound jumping on strong British PMI - and $ losing slight ground against the Euro as Nowonty says the "ECB has to act" - but making gains against the Yen as the $/Y cross rebounds from the 120 level. With the weaker $, we should hava tailwind for commodities, but most metals are firmly red as Industrial exposed Platinum and Silver drop 1%+, and the Crude complex is off 1.5%+ on weaker China data. Natty Gas is continuing its downward trajectory as heavy stockpiles coupled with mild weather have heavy selling continuing in the complex - knocking contracts off 3%+ early.
Ahead of us today, we get Markit US Manufacturing PMI at 9:45, ahead of the "official" ISM Manufacturing and Construction Spending data at 10 - At 11:30 the Treasury has a Auction of $28B in 3month and $26B in 6mnth Bills, just before Fed's Williams Gives Welcome Remarks at SF Fed Conference at 12. At 2pm, we get the October 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices. Down in Washington, the Court delivers orders at 9:30am, and at 2pm Treasury Secretary Lew convenes the latest meeting of the Financial Stability Oversight Council.