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