Oil is back under $65: Here’s a super-quick guide to what traders are talking about right now

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Morning! Spoos are off 40bp early despite more multi-billion dollar deals (SAP for CALD / BX Stake in TRI) as we get no recovery from the worst session since September – Angst about this week’s catalysts weighs (SOTUtonight, FOMC, FAANG #s, Employment, China PMIs) – It’s a wide sea of red over in Europe, where the DAX is down 70bp as banks and basic resources are getting worked over. Tech shares remain under heavy pressure into the big earnings reports this week. The FTSE is off 60bp with every sector in the red, but Food stocks outperforming slightly on Domino’s Jump. Swiss Markets outperforming as Swatch flies, and the MICEX doesn’t care about the Treasury’s oligarchs list as it did not contain fresh sanctions. Broad-Based Selling in Asia Overnight with every market heading south – Nikkei off 1.4% – Hang Seng off 1.1% – Shanghai lost 1% – KOSPI off 1.2% and Aussie off 90bp as miners had broad-based losses

The probability of four rate hikes this year is approaching 25% as we await Yellen’s last meeting – but JGB’s hit BOJ’s Target overnight as US 10YY kissed 2.73% in Asian trade. Bunds are catching a bid tho, which is mitigating the move in US10’s. The DXY is under some good pressure again, as the Euro flies on their GDP Print and the $/Y collapses back to y’days lows and Sterling gets back upside $1.41. Gold up small on the $, while Copper is off small despite Ore up 60bp overnight in China. Song remains the same in Energy – Natty Gas continues to rip north, adding 1.5% early, while WTI is making some fresh lows under $65 early.