Here's a super-quick guide to what traders are talking about right now

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January 3, 2017 12:31 PM

Dave Lutz, head of Exchange Traded Funds at JonesTrading, has a quick overview of what traders are watching on the first trading day of the year:

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Here's Lutz:

Good Morning, and a belated Happy New Year! US Equity Futures are leaping, with Russell up 1.3% and Spoos 80bp better as a Massive rotation from Sovs into Equities has Post-Election Trades re-igniting as Congress Convenes and Global PMIs are coming in better. Sea of Green over in Europe, where the DAX is up small, but the Periphery is adding 50-90bp. The EU Banks jumping 1.3% higher, but Tech names are under pressure as CES kicks off in Vegas. Miners and Banks leading London higher, helping the FTSE hit Fresh record highs. The Only markets across the continent under pressure are Israel (Netanyahu Headers), Turkey (ISIS attack) and Finland. In Asia, China was up 1%, Aussie jumps to 19month highs as the Miners rallied, while Japan closed for Holiday. EM Asia started 2017 mixed.

Global Manufacturing data and stronger German Inflation have Sov Yields jumping (US 10Y thru 2.5% again) and combined with Oil’s move has Heavy Steepener Trades going thru in America, a huge tailwind for US Fins. The DXY is on fire, jumping back toward 14year peaks as $/Y lurches towards 120 and the Parity magnet with the Euro grows stronger. Commodity currencies like the A$ rallying tho on Chinese PMIs, while that Turkish lira hits another fresh record low. Despite Ore dropping to 8week lows, Copper is up - joining other industrial metals like Nickel and Platinum up over 1% despite the ripping $ that weighs on Gold. China data and Kuwait Production Cut has Oil jumping 2%+ to 18month peaks, but Natty Gas is getting smoked for 6% - Huge Warming Trend predicted for Mid-January.

Ahead of us today, we get Markit US Manufacturing PMI at 9:45, right when the ECB Publishes Weekly, Monthly QE Portfolio details. 9:50 brings Bank of England Bond-Buying Operation Results, just before the 10am release of the US ISM Manufacturing and Construction Spending details. Quiet otherwise as we await NFP later this week – but look for headers from Washington to be heavy as the 115th Congress convenes today.

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