Reuters
Good Morning! US Futures are off about 50bp as FX moves rattle players early. The $/Yen is in Full freefall to 108, hitting the lowest since October 2014 - while volatility on the British Pound continues to surge higher. The DAX is in the red by 20bp, as Consumer Discretionary shares get clubbed for 2% - offset by rallies in Energy and health-care early. FTSE is down small despite the banks being whacked for 1.5% as Energy offsets losses. Over in Asia, Nikkei ignored the ripping Yen, gaining 20bp and breaking a 7day losing streak on the back of Energy companies, with the Small cap heavy Mothers Index +4.9% leading the way. HK-Shanghai connect continues to see heavy flows benefiting Hang Seng, which climbed 30bp despite Shanghai being hit for 1.4% as the recent selling ban on large shareholders nears its conclusion. Sydney gained 40bp, but most of EM Asia closed lower.
The US 10YY has dropped 3bp overnight, and testing yesterday's lows near 1.72% as a strong bid for Bunds persists, pressing the German 10YY below 10bp. Dovish lingo from the Fed yesterday has that "Policy Sensitive" 2YY hitting 6week lows ahead of Yellen tonight - but the DXY has picked its head up from the floor, as the Euro reverses gains from 6month highs as Draghi warns future of global economy uncertain. Haven flows are benefiting Gold, which has leapt 1.3% overnight, followed by 1% moves in Silver and Platinum. Copper is under some sharp pressure however, as headlines predict heavy China exports coming soon. The Oil complex is holding yesterday's 5% gains, while Natty gas has dropped another 1% into inventory data later today.
Ahead of us today, we get Weekly Jobless Claims at 8:30, that Natty Gas Inventory data at 10:30. A few clues on the US Consumer hit this afternoon, with the Monthly U.S. Retail Chain Store Sales Index at Noon, and US Consumer Credit at 3pm. Heavy Fed headlines expected after the close, as Fed's Yellen is in New York, with Greenspan, Bernanke and Volcker at 5:30, and Fed's George Speaks in Nebraska at 8:15.