What are traders chatting about this morning? Oil, Greece, and office supplies ...
Good Morning! US Futures are under slight pressure, steadily improving from overnight lows. Commodity stocks are starting under pressure (RIG/FCX getting hit), and GILD (largest weight IBB) is under pressure on Hep C pricing. Most EU markets are under pressure, but steadily improving as Athens rallies into the green after being 3% weaker (Greece stress building as FT says ECB balking). The only STOXX sector in the green is Consumer Discretionary - follow thru from the strong momentum in the States (ODP/SPLS merger just announced). The DAX is off 19bp in average volume, with Tech outperforming there. Over in Asia, Aussie rallies 1% for the 10th straight session and Shanghai lost small ahead of China easing headlines (China cuts banks RRR, first time in nearly 3 years). The Nikkei added 2%, with the pro-cyclical sectors notably outperforming in Japan
The US 10YY is flat, hovering around 1.8% - and German Bunds keep seeing profit taking with yields around 35bp. The Dollar is losing slight ground again against the Yen, but recovering against Petro FX (C$/A$) and Euro. With the DXY higher - we have a headwind for commodities, but Gold is recovering from yesterday and AG complex is holding the bulk of yesterday's gains. Oil is retreating from yesterday's spike (WTI up ~20%+ in 3 days), as Putin's spokesman denying any Saudi deal on Oil prices and Heavy Inventory headlines ahead - API last night showed a build of over 6mm barrels- we get DOE data today at 10:30, Street looking for a build of 3.25MM. At 8:30 we get ADP Employment Change, Markit US Composite PMI at 9:45. At 10 the ISM Services Number and the "Online Help Wanted Index" ahead of the DOE Crude data at 10:30. Fed's Mester Speaks on Economy at 12:45