Good morning, and Happy Taco Tuesday! US Futures are headed higher this AM, with Russell gaining 30bp, but Nasdaq basically unchanged ahead of AAPL tonight. Markets across Europe are mixed, with the DAX dropping 10bp as HC and tech shares fall, but banks across the continent are on fire early, with the SX7P gaining 1.7% and Italy's equity market surging nearly 2% as chatter increases on bank initiatives. London is gaining 20bp as BP and Standard Charter react well to #s. Over in Asia, Shanghai closed up 60bp on the back of a rally in the healthcare and real estate sector - Nikkei lost 50bp as the Yen caught some more upward mojo and Fins were hit on Bank Mitsubishi #s - Miner weakness caused Aussie to shed 30bp as traders returned from Holiday, while India leapt 1.3% for little good reason.
The US 10YY remains above 1.9%, breaking upside y'days peaks as German Bunds come under sharp pressure again. The DXY is under some pressure, as the Pound hits 10week highs as 'Brexit" fears recede, the Yen catches more upward momentum into BoJ Thursday, while Euro remains stronger, but eyes on the 1.13 level which failed in the overnight. Metals are weak across the board as Ore was hit for 6% and rebar 4% as Chinese trading curbs came into effect - Gold is not enjoying the weaker greenback, losing 30bp - while Copper drops 1%. The Oil complex has a bid to it early, with WTI rallying 1.3% and getting back upside $43 in the overnight session.
Ahead of us today, we get US Durable Goods Orders at 8:30, while Housing plays will look towards Case-Shiller at 9. At 9:45 we get Markit US Services PMI, just ahead of the 10am release of the Consumer Confidence Index and Richmond Fed. At 1pm the US Treasury auctions off $34B in 5's,a nd tonight we get API data for Crude at 4:30(Reuters looking for 2.3M build, and Genscape saying Cushing grew 1.5M) - Tonight brings Primaries in Connecticut, Delaware, Maryland, Pennsylvania and Rhode Island. Down in Washington, at 9:30 the SEC holds meeting of Equity Market Structure Advisory Committee - at 10am the Senate Armed Services Cmte holds hearing on status of F-35 Joint Strike Fighter program, while the FDIC meets to discuss liquidity risk standards for certain FDIC-supervised institutions. The House meets at noon, to consider 14 bills under suspension of the rules incl. H.R. 4096, a bill that would amend the Volcker rule.