Here's a super quick guide to what traders are talking about this morning
Good Morning! US Futures are off small and rebounding from earlier Greek headlines (Creditors demanding more concessions - Tsipras/Syriza balking), with the S&P off 20bp - but vastly outperforming European markets, which sees the DAX off nearly 1% as Consumer Discretionary names break lower. Athens off 3%, and most banks are 5-10% lower in Greece as dueling headlines weigh. Volumes are decent in Europe early, with most exchanges trading well over normal averages. Over in Asia, China liquidity concern eased after a flood of new offerings and state-backed papers calmed investors - helping the Shanghai rally another 2.5%, but our traders in Hawaii note "HK/SH connect Northbound selling picks up. Offshore not convinced... profit taking" - The Nikkei Hits Highest Level in More Than 18 Years on BOJ buying - Hang Seng up small and Aussie closed flat.
The US 10YY is off small, following the bid in Bunds as uncertainty on Greece causes haven buying - thus helping the Euro rally against the Greenback. The DXY is weaker, causing a tailwind for commodities - and we see all the "hards" in the green, with Lumber, Silver, Zinc and Platinum all up 50bp+. Softs are the source of funds early, while the Oil complex is under pressure despite API showing a bigger draw than expected last night at 3.2M Barrels - (1.5M barrel draw expected overall - 1.3m in Cushing) - The Oil complex is focused to see how the Nuclear negotiations go into Next week's deadline - Iran's Supreme Leader laid out unacceptable conditions last night
Scheduled Catalysts today include First-quarter GDP expected to be revised higher at 8:30 - DOE data for Crude At 10:30, a $13B 2Y note re-opening at 11:30, ahead of the $35B 5Y auction at 1. In Washington - House hearings on EIA's analysis of EPA clean power plan and rising health insurance premiums under Obamacare begin at 10, and at 2pm we get 2 House committee hearings for investors to focus on - a hearing on Puerto Rico's political status and economic outlook, and a House Ways and Means committee hearing on "Repatriation of Foreign Earnings as a Source of Funding for the Highway Trust Fund" (Many call this QE4).