Overnight price action was relatively subdued after the fireworks on Thursday and Friday sent markets shooting higher:
- SPX futures traded in an overnight range of 5 points on low volume, trading down about 0.1% at 7:30 am EST
- Asia and Europe caught up to the afternoon rally in the U.S., with most markets trading 0.5 – 2% higher, with the notable EXCEPTION of the Shanghai index, which closed down almost 1%, at 3.5 year lows
- The dollar was flat to higher vs. most currencies, with the Euro showing the most weakness (down 0.5%)
- Treasury bonds were close to flat overnight. Italian yields moved higher while Spanish yields moved lower
- Commodities were mostly flat with the exception of grains, which are up 2-3%
Very active week this week. The key events start on Wednesday:
Wednesday: FOMC release (no press conference). Also get global manufacturing PMI’s and U.S. manufacturing ISM in the morning
Thursday: ECB meeting and Bank of England meeting. All eyes on the ECB after Draghi’s comments last week
Friday: U.S. Non-Farm Payrolls Release. Also get U.S. non-manufacturing ISM release