UK and European traders have returned from their long weekend in a relatively good mood with indices climbing. Athens is leading the way with a 3.0% gain after the government reached a technical deal with the EU on reforms to unlock more bailout funds. The FTSE is up 0.4% boosted by stronger than expected UK manufacturing PMI while continental countries were in line with expectations.
In North America, today, the focus is back on earnings while macro traders await tomorrow’s FOMC statement. Results continue to come in positive led by big drug companies. Pfizer and Merck both beat the street while Merck also raised guidance. Big energy results were mixed with EnCana posting huge numbers while ConocoPhillips posted a surprise loss. Cummins and MasterCard continued runs of strong reports from Financials and Industrials. Apple results are due after the close today which could mark a turning point for the NASDAQ. Dow and S&P futures are steady indicating
In currency trading, gold has stabilized at a lower level, digesting yesterday’s selloff. GBP and EUR are both up slightly. CAD is bouncing back a bit with crude oil rebounding. Yesterday’s slide on the return of Libya’s biggest oil field to production appears to have quickly run its course. Energy traders’ focus has shifted back to this month’s OPEC meeting and the potential for production cuts to be extended. Meanwhile, reports indicate Russia is close to reaching its production cut targets and apparently is open to talking about an extension.
Corporate News
EnCana $0.11 vs street $0.03, cash flow $278M vs street $102M
ConocoPhillips ($0.02) vs street $0.02
Merck $0.88 vs street $0.83, raises full year guidance to $3.76-$3.88
Pfizer $0.69 vs street $0.67
MasterCard $1.01 vs street $0.95
Cummins $2.26 vs street $1.81
Coach $0.46 vs street $0.44
Economic News
Significant announcements released overnight include:
Australia cash rate 1.50% no change as expected
China Caixin manufacturing PMI 50.3 vs street 51.3
Japan service PMI 52.2 vs previous 52.9
UK manufacturing PMI 57.3 vs street 54.0
Germany manufacturing PMI 58.2 as expected
France manufacturing PMI 55.1 as expected
Italy manufacturing PMI 56.2 vs street 56.0
Italy unemployment rate 11.7% vs street 11 5%
Upcoming significant economic announcements include:
There are no major announcements scheduled for North America on Tuesday
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Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
Colin Cieszynski