Morning! US Futures are continuing to rally, gaining 15bp in the early hours as WTI stretches its legs over $51. Euro markets consolidating after yesterday's surge higher - HC, Banks and Travel Stocks all leading declines as the DAX drops 50bp - while Utilities and Telecom are outperforming across the continent as the ECB targets Corporate paper buys. London is outperforming, with the FTSE trading flat, as Miners and Energy names climb higher. In Asia, Shanghai lost 40bp as China trade data sparks a renewed sense of caution - Heavy early selling in miners whacked Aussie before the ASX clawed back to flat - Nikkei climbed 1% as Japanese Growth revised higher, while Emerging markets equities and currencies rose for a fifth day. Turnover is very soft globally, with most exchanges trading 20-30% below normal averages. Chinese markets are closed for the rest of the week (Dragon Boat Holiday.)
The DXY is getting smashed thru the week's lows as the Euro and Yen break due north, and German Yields rebound from 3bp as the ECB ramps its corporate program - while Sterling Steady against both the Greenback and Euro. With the drop in the Dollar, we have a tailwind in commodities - - Metals are showing a sharp rebound from yesterday's weakness, with Nickel, Silver, Zinc and Platinum all up 1%+. The Energy complex is higher, with WTI over $51 and hitting 8+month highs on Nigeria outages, increased Chinese demand and a bigger API draw, while Natty is up 1% despite IEA cutting demand forecasts. Softs are all big green.
Ahead of us today, we get UK's NIESR GDP Estimate at 10, right when JOLTS Job Openings hit in America. At 10:30, we get that DoE data for Crude, last night API showed a draw of 3.6mln last night, above estimates of 2.7mm. At 1pm focus falls on a $20B auction of 10's in a re-opening. Heavy data tonight, with CPI and PPI from China - Machine Orders from Japan along w/ a BOJ member speaking, and Draghi talking at an Economic Forum in Brussels.