The Morning Snapshot

Overall, Sentiment is Higher on The Day

Treasury yields remain near the highest levels since 2011 after last Friday’s jobs report came in better than expected, bolstering expectations that the Fed will begin tapering its asset purchase program sooner rather than later. Overall, sentiment is positive with the dollar losing ground versus its major peers, sovereign yields falling, and stocks rising. S&P 500 futures are higher by +0.4%, while across the pond the Euro Stoxx 50 is higher by +2.4%. Crude is trading down -0.6%, while gold and copper are trading +1.5% and +0.3% higher respectively.

Sentiment Mixed Before Chicago PMI, Consumer Confidence, and Fed Officials

Sentiment is mixed this morning, with risk-on trades dominating in Asia and risk aversion taking hold in Europe after the FT reported that Greece’s second privatization was at risk. The Euro Stoxx 50 was down -0.4%, consistent with widening sovereign debt spreads in the area to the German Bund. Domestically, S&P 500 futures are +0.3% higher before the Chicago PMI and Consumer Confidence data points are released. Treasury yields are declining, extending losses from the highest levels since 2011, with tens falling -2bps to 2.45%. Commodities are mixed with oil and copper gaining nearly +0.3%, while gold continued testing a 34-month low. The dollar index is nearly flat while the euro gains slightly and the yen is weakening above the 99 level. Investors will be listening to the Fed’s Stein and Williams, who are both set to speak about monetary policy separately today.

Sentiment Higher Before Personal Income and Outlays

Sentiment is higher this morning before U.S. personal income and outlay figures are released, with most risk currencies trading higher overnight, consistent with rising stocks, commodities, and tightening EU sovereign bond spreads to Europe. The dollar and yen are underperforming the rest of the FX market, with the dollar index trading down by -0.15%, while the euro is outperforming on better than anticipated German unemployment figures and the EU agreement on how to handle failing banks. Most commodities are moving higher this morning, with crude oil up +0.3% and copper just slightly higher on the day. S&P 500 futures are higher by nearly +0.5%, while the Euro Stoxx 50 is down -0.2%.