- Thomson Reuters
Via Dave Lutz, head of ETFs at JonesTrading, here’s what traders are talking about right now:
Good Morning, and Happy Friday! US Futures are gaining small, with all eyes on US jobs data, where the Street expects 180k. The Seas are green across Europe – With the DAX adding 30bp with Energy leading across the continent as Brent rebounds and the Fins pop back from yesterday’s late session selling. In London, the FTSE is jumping 1.2% as miners pop and UK bank stocks clock best month in six years. Only Consumer Discretionary is red across markets, and volumes are pacing slightly heavier than the 20day norm. Asia very muted – Nikkei Flat, Shanghai gained 10bp. Aussie got hit for almost 1% tho, as Telco and Banks got whacked. For the week, Nikkei jumped 3.5%, while Aussie got hot for 2.5% as commods dropped.
Fed Funds rest at a 34% chance of a September Hike, with heavy consensus a Jobs number over 225k will spike Fed Fund Futures hawkishly. The DXY has clawed back ½ of yesterday’s losses, making gains against Euro, Yen and Commod currencies. There is some decent selling of Sov debt as Japan’s Government Bond Yields Hit Five-Month Highs – 10yr close to 0% – as the BOJ surprised markets by holding off on buying Longer Dated JGBs at it’s operation today. Metals are mixed, with Copper gaining 50bp as Ore jumps 2.5% in China, while the stronger greenback weighs on Gold. Oil Complex is bouncing as Russia signaled support for a cap on production and WTI rebounds from its worst weekly performance since the start of the year. Natty gas remains in the red tho, and we continue to see a bid across the Softs, with Corn popping 1% early.
Ahead of us today, we get the Change in Nonfarm Payrolls at 8:30 – ISM New York at 9:45, and then at 10am Factory Orders and Durable Goods Orders print. At 1pm we get that Baker Hughes Rig Count, right when Fed’s Lacker (Big Hawk, Non-Voter) Speaks on Interest Rate Benchmarks in Richmond. At 3:30 we get the CFTC’s Commitment of Traders” data. 4pm brings the closing bell, and US Traders begin their 3day weekend.