Two developments late yesterday afternoon have had a big impact on overnight trading that may continue to impact trading across world markets today.
Apple reported better than expected earnings and guidance, helped by stronger than expected iPad sales. this news has propelled NDAQ futures to a 0.8% gain, outpacing its US index peers which are up 0.2% and flat European indices to the upside. Apple may be active on the news today, and we could see positioning in Tesla Motors ahead of tonight's inventory report. Allstate, Time Warner and Garmin may also attract interest from traders today after also beating the street by wide margins.
Despite the gains, the Dow remains below 22,000 and the NASDAQ 100 remains below 6,000 two key round number hurdles. Indices may also be active around today's ADP payrolls report with the street expecting jobs to rebound toward 190K.
The second big announcement overnight was a 1.3 mmbbl increase in US API inventories, reversing part of last week's 10.2 mmbbl drawdown. Oil staged a second leg down on the news, nearing $49 after failing to hold $50 Tuesday. WTI may remain active through the day especially around the mid-morning DOE report with traders expecting a 3.1 mmbbl drawdown.
Currency markets have been mixed so far today. GBP continues to climb against USD along with EUR overcoming a weak UK construction PMI report. The greenback is stronger against CAD and NZD with commodity prices weakening. JPY and Gold remain on the back foot, indicating that political uncertainty in North Korea and Venezuela aren't registering with traders. That being said, the potential for US trade actions against China may be weighing on Copper slightly.
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