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Overnight Sentiment: Listlessly Morose

Tyler Durden's picture




 

Nothing is going on this morning that did not already happen at 8:30:01 am on Friday. As a result, the three robots who are the sole churners of stocks this AM will keep risk where it was just after NFP, because that is part of the new regime, one in which USD weakness is now stock weakness, and one where stocks have a ways to drop before NEW QE is greenlighted. Also with Europe offline all day, the robots won't even be able to frontrun the European close. Bank of America summarizes the lack of events shaping the market this morning.

Market action

Markets are responding to last Friday's softer-than-expected US employment report. Asian equities fell for the fourth day in a row, the longest string of losses since November. The MSCI Asia Pacific Index dropped 0.6% on the day, following a 1.3% drop the week prior. The Nikkei, Korean Kospi and Indian Sensex were all off roughly 1.5%. European equity markets are closed. At home, equity futures are in the red; the Dow is set to open with a triple-digit loss.

Bonds rallied sharply on Friday in the wake of the jobs report, with yields on the 10-year Treasury note down 13bps to 2.05%. This morning, bonds are trading flattish across the Treasury curve. Meanwhile, the US dollar is steady this morning, after falling 0.2% on Friday.
Commodities are cooling on the softer demand backdrop and after Iran agreed to resume talks about its nuclear program. WTI crude oil is off $1.50, to $101.80 per barrel. In the industrial metals complex, copper is down to its lowest level since February, down 1.3% in morning trading.

Overseas data wrap-up

China's CPI inflation accelerated to 3.6% YoY in March from 3.2% in February, firmer relative to the 3.4% estimate penned by the consensus. CPI inflation in China was upwardly biased in January and downwardly biased in February, due to the timing of the Chinese New Year. Taking the average over January and February yields a YoY inflation reading of 3.9%, implying that CPI actually eased somewhat in March.

The week ahead: Inflation trifecta

This week, it's all about inflation. We'll be getting import prices, producer prices, and Friday's CPI report, which is the main event. We are expecting a 0.2% increase in core CPI inflation, with the YoY rate steady at 2.2%. On the policy front, there is a conference hosted by the Atlanta Fed on financial reform. We'll be hearing from a bevy of Fed officials, including Chairman Bernanke.

 

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Mon, 04/09/2012 - 07:46 | 2327459 navy62802
navy62802's picture

Forget morose. Looks like futures might turn positive before the opening bell, if you can believe that.

Mon, 04/09/2012 - 07:47 | 2327462 GeneMarchbanks
GeneMarchbanks's picture

-111.00

Mon, 04/09/2012 - 07:54 | 2327477 Conman
Conman's picture

What futures are you looking at? gold futures?

Mon, 04/09/2012 - 09:15 | 2327645 navy62802
navy62802's picture

Well, about 2 hours ago, I was watching Dow futures jump from -130 to -118. On that rapidly rising trend, they were headed positive 2 hours into the future. Ended up levitating around -120 give or take a few. Probably going to open around there.

Mon, 04/09/2012 - 07:46 | 2327460 The Alarmist
The Alarmist's picture

Don't worry, we'll get a little caffeine in our systems.

Mon, 04/09/2012 - 07:52 | 2327475 Ted Baker
Ted Baker's picture

A PESIMISTIC TONE FROM BERNANKE ON THE STATE OF THE ECONOMY AS WELL AS A HINT ON QE WILL COME THIS WEEK WITH MORE CLEAR INDICATION OF FURTHER EASING ON THE 15TH APRIL 

Mon, 04/09/2012 - 07:55 | 2327486 Conman
Conman's picture

PLEASE TELL US MORE!

Benny can kiss QE3 goodbye when that hot CPI data comes in.

Mon, 04/09/2012 - 07:59 | 2327492 The Alarmist
The Alarmist's picture

This is not the inflation you are looking for.

Mon, 04/09/2012 - 08:08 | 2327505 Conman
Conman's picture

Does mind control work from the Dark Side? Benny should just shoot lightning from his fingers and take over the empire. That and build a droid army.

Mon, 04/09/2012 - 07:54 | 2327480 fonzannoon
fonzannoon's picture

Everyone knows what is coming at this point. Making pretend more QE is not on the way is laughable.

Mon, 04/09/2012 - 07:55 | 2327481 Zgangsta
Zgangsta's picture

In this age of enlightenment, anything can be turned into an asset.  So any news is good news.

Mon, 04/09/2012 - 07:57 | 2327489 rokka
rokka's picture

Did you mean USD strength is now stock weakness?

Mon, 04/09/2012 - 08:19 | 2327514 Element
Element's picture

Happy Easter bitchez! ... hokay ... not so much.

Pat Benetar - Painted Desert
http://www.youtube.com/watch?feature=player_detailpage&v=HY_2jttGfW4

Mon, 04/09/2012 - 10:06 | 2327783 worbsid
worbsid's picture

Low volumn continues.

Mon, 04/09/2012 - 15:17 | 2329005 El Viejo
El Viejo's picture

...

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