Morning Juice – US Session Prep

Morning, Traders!
It is Tuesday the 6th of August, here are some things to look out for today.

Sentiment
Stocks fluctuated in early trading, as investors braced for more volatility following Monday’s historic selloff.

US equity futures pared gains, while European stocks fell. Treasuries fell, with the 10-year yield on track for its first increase in nearly two weeks. Traders reduced their bets that the Federal Reserve will intervene to support markets with early interest rate cuts.

To add to the general market anxiety, investors are rushing to protect their portfolios from a severe market crash. And the VIX index, Wall Street’s “fear gauge,” has remained at its highest level in nearly two years.

Japan remained the epicentre of volatility. The Topix index advanced 9.3% after falling 12% on Monday.
According to JPMorgan, the unwinding of the yen carry trade is only about half complete.

Docket
08:30 ET
US Trade Balance for June
Median Forecast:  -$72.5B | Prior: -$75.1B | Range: -$71B / -$76.2B

11:00 ET
NY Fed Household Debt & Credit Report

11:30 ET
US sells $46 bln 52-Week Bills

12:00 ET
US EIA Short-Term Energy Outlook Report

13:00  ET
US sells $58 bln 3-Year Notes

Good luck!