Thomson Reuters
Morning! US futures acting great, climbing 1.3% as Crude jumps 4% ahead of OPEC Secretary today and Saudi Oil Minister speaking in Houston tomorrow. WTI roll today also helping. European Markets have their eyes on London, where the pound is having the biggest drop in a year, after Boris Johnson threw his support behind leaving the EU - That said, many large UK-quoted companies with foreign earnings benefit from a weaker pound, and we have the FTSE up 1.2% despite weakness in Fins on HSBC #s. Euro markets are strong, with the DAX up almost 2% as Financials jump from the abyss again - Helping Italy gain nearly 3%, while a strong bid in Divvy stocks has defensive sectors up across the board in Europe. In Asia, Shanghai rose 2.4% as investors cheered the change at the top of the CSRC - Aussie popped 1% on the back of Industrials and Materials - Japan's PMI posted light, sparking more dovish hopes, helping the Nikkei pop 1%, while the bulk of EM Asia was well bid, save Thailand which was closed for Holiday.
Big Reversal of Haven positions, with Gold retreating from 1Y highs quickly, dropping almost 2% and nearing a $1200 test - While despite JGB's finally posting their first close in Negative territory, and German 10YY in the red, US 10's are seeing some pressure, with yields nearing Friday's peaks in the overnight as we await Vice Chair Fischer + Heavy economic data this week. The Euro is getting smoked (Mixed Eco data + Brexit), and that DXY is getting some sharp legs off the 200dma finally. The Yen is getting beat on (finally) as well, as Forex attention shifts from London to Shanghai, where the G-20 finance ministers meet on Thursday and Friday. With the Weaker $, we have a sharp big under most commodities, Copper up 2% as China buying from Smelters sparks a cover, but other Industrials like Zinc and Platinum jump as well. Focus rests in Energy tho, and we have Oil up 4% as CeraWeek speakers in Houston gear up - While Natty continues to break lower, losing 1.5% as warm weather and La Nina weigh.
Ahead of us today, at 8am IEA publishes Medium-Term Oil Mkt Report. At 8:30 we get Chicago Fed Nat Activity Index, followed by Markit US Manufacturing PMI at9:45. We have 2 Central bank Speakers at 1, where ECB's Sabine Lautenschläger Speaks in Stuttgart and NY Fed's Potter Speaks in New York. At 2:30 WTI Contracts roll over (Spot will stop trading, watch April) - and the OPEC Secretary speaks at 2:50 today from Houston. Down in Washington, Congress gets back from Holiday while ay 11:10 President Obama speaks, takes questions from National Governors Assoc. at White House.