Good Morning! US Futures are starting off strong, with the S&P marked 40bp higher. Nasdaq is jumping over 60bp as the Semis continue to rally from Friday's INTC headlines - and we have Merger Monday helping - 4 Healthcare Deals early - (OptumRx to acquire CTRX for $61.50/shr; HZNP to acquire HPTX for $46/shr; 4901 JP buying ICEL for $16.50; TEVA for ASPX for $101). Over in Europe, a sea of green except for Greece, where the Greek Saga continues as they haggle over the reform list due today - Athens under pressure as the banks get whacked. The DAX is up 1.5% however, led by a 2% surge in discretionary and tech shares - but volumes remain quite light, with most markets trading ~30% below normal levels. In Asia, China up +2.5% after CB Gov Zhou said the gov't can do more to support growth; Falling Industrial Production data didn't slow Japan down into year end with the Nikkei adding 70bp; India snaps a 8session losing streak; while Aussie's Energy sector dragged the ASX down 1.3% as Crude continues to weaken
The 10YY remains near Friday's lows of 1.94% as Janet's tone continues to spark dovish moves. While the Greek saga plays out, Athens yields are only out slightly this AM, but the demand for Bunds is insatiable, with Germany's 10YY resting on fresh closing lows. The $ is gaining upside momentum, jumping against Euro (1.09 fail), Yen (Y120 test coming), and Aussie - causing a headwind for commodities. The Oil complex is weaker (Iranian deal next 48hours? / Yemen headlines subsiding) with WTI off nearly 2% and just under $48. Huge headwind for most metals, with Gold finally succumbing to the $ and breaking downside of $1200 in a hurry, but dovish tailwinds from China has copper resting slightly higher.
Bear in mind that the European Clocks Changed (Most markets open at 3am and close ~11:30amET). We have Personal Income and Spending; Core PCE scheduled for 8:30; Pending Home Sales at 10, and Dallas Fed Manf. Activity at 10:30. Tonight after the close, we have Fed's Fischer speaking on Monetary Policy and Stability in Georgia. Focus this week is on multiple FOMC speakers, including Janet - and the Nonfarm payrolls release this Friday (when the markets are closed). Overseas attention is on Greek and Iranian Headlines - along with Chinese PMI data, BOJ's Tankan, and EU Employment and Inflation measures.