Good Morning! US Futures are under pressure, but off the lows of the overnight which saw the E-Minis test yesterday's floor (2090) and bounce. While the S&P is off 20bp, Nasdaq under some good pressure (YELP off 18%, Biotechs getting hit). European markets are mixed, but seeing heavy volumes, as headlines say Greece, creditors aiming for May3 deal. The DAX has regained small of yesterday's shellacking, led by a rebound in the Financials that have seen heavy selling this week. Heavy Earnings focus sees names like NOK (off 8%) dragging down certain sectors. Over in Asia, Japan came back from Holiday to record its worst session in 4months, losing 2.7%, as no change from BOJ coupled with the strengthening Yen hurt equities. HK, China and Sydney all lost just under 1%. Banks under sharp pressure again down under.
10Y Bund Yields, which doubled yesterday, are up another 5bp as Euro Prices ended 4 months of deflationary signals, putting upward pressure on US Yields early. The Euro surged over 1.12 in early trade as headlines hit that "German Unemployment hits 24y lows" - and while that move has partially retraced, eye are on the DXY basket floundering below 95 in early trade. This weakness is a tailwind for commodities, and while we see Copper jumping 1.2% early, both Gold and Silver are under pressure, with gold barely holding a $1200 test in the overnight. The Oil complex continues to see covering after US inventories came in lighter than expected, with WTI up 1% and nearing a test of yesterday's peaks.
Ahead of us today we have Weekly Jobless Claims, Personal Income, Canadian GDP and Fed's Tarullo speaking at 8:30; ISM Milwaukee hits at 9, at 9:45 we get the Chicago Purchasing Manager (9:43 for paying subs); at 10 Retail sales revisions hit, and at 10:30 we get Natty gas Inventory data