Here's a super-quick guide to what traders are talking about right now
Good Morning! Renewed growth concerns continue to weigh on Futures globally, pushing this S&P down 70np to start today. Huge sea of red overseas, with the Miners getting worked again in London, Anglo and Glencore off 4%, Rio 2.5% - hitting the FTSE for 1.2% and nearing a 1month low. The DAX is faring a touch better, losing only 80bp as Industrials rebound and Fins mitigate losses - helping Italy's market trade near unchanged. Volumes are heavy across the continent, with most exchanges trading 15%-40% above normal trends. Asian stocks fell for 6th day, their longest losing streak since Feb as Shanghai slipped 10bp, closing just below 3k resistance, while Hang Seng 70bp. Aussie lost 1.5%, its worst session in a month as BHP was shellacked for nearly 10% and South32 lost 8%. Japan remains closed until Friday.
Not seeing any retracement in Sovereign Yields - with Germany's 10YY stuck near 20bp and the US10YY under 1.8%. The DXY is still recovering from 15M lows, making gains against Euro as Eurozone retail sales fall by more than expected as $ shorts (near 3Y highs) continue to cover. Commodity currencies are under pressure, with Aussie continuing to retreat as metals remain weak - Rebar -3% while Ore lost almost 2% in China. Silver, Gold, Platinum and Copper all off ~1%+. Crude Oil is slightly higher early tho, as Inventory Draws coupled with Alberta Fires impacting Oil sands production helping the complex outperform the stronger Greenback. Softs look weak across the board as crowded longs continue to unwind.
We have a heavy day of catalysts ahead of us, starting with the ADP Employment report at 8:15, followed by the Treasury's quarterly refunding announcement, along with Trade Balance, Nonfarm Productivity and Unit Labor Costs at 8:30. We get those Markit PMIs at 9:45, just ahead of the "official" ISM services read, which hits at 10 along with US Factory and Durable Goods Orders. The DoE data for Crude hits at 10:30, last night's API data showed a 1.3M build (Street at +750k), but a smaller build in Cushing at 380k (Genscape 820k estimated) and huge draws in Distillates (-2.6) and Gasoline. We have Fed's Kashkari speaking on "Too Big to Fail" at6:30. Headers from activists from the Ira Sohn will be hitting throughout the session. Focus in Washington will be on the Election - Cruz Quits, ending GOP fight - but Sanders' unexpected 5% win over Clinton has the Dems in turmoil.