Morning! US Futures are starting under pressure as we await the reports from 120 S&P companies this week – Nasdaq underperforming, with QQQs off 30bp ahead of a heavy FAANG reporting week. Biotech M&A Continues, with Sanofi for Ablynx overseas, but most EU markets are taking a breather. The DAX is off small as focus remains on the selling in Sovereigns – Automobile and basic resources stocks outperforming, while Food and Beverage issues falling. Tech shares are acting well as AAPL suppliers jump. The FTSE is up 30bp as Miners jump nearly 2% early. In Asia, Nikkei closed unch – Hang Seng off 60bp as Banks broke lower – Shanghai down 1% as the CSI Tech Index gets slammed for 3.3% – KOSPI up 90bp – Aussie added 40bp and EM snapping a 11day winning streak as we await a fresh sanction report from DC on Russia today
Into Yellen’s last FOMC meeting this week, the US 10YY ripping thru 2.7% as we have heavy selling in Bunds – German 10YY up 4bp, and their 5YY into positive yields for a first time in nearly 3 years as the Dutch Central Bank chief called for a end of ECB’s Bond Buying Program. The DXY is breaking a bit higher as profit-taking hits Euro, while Brexit Jockeying in London weighs on Sterling. Ore was down 1% after falling 4.5% last week, but Copper is holding bid, up 20bp. Gold retreating from 18month highs as the Dollar hits the yellow metal for almost 1% early. WTI is off 50bp, rolling fromFriday’s$66.50 peak – Softs are pretty well bid, paced by a 2% pop in Wheat.
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