fter Asia Pacific trading yesterday started the week off with a bang, markets in Europe and North America stumbled a bit to start trading, mainly due to a lack of news. US indices
have regained their footing into the afternoon as traders start to look ahead to Wednesday’s FOMC decision for confirmation that QE could be around for many months to come yet.
The prospect for extended QE weighed on USD into the afternoon helping gold to break out into a new upleg. Among paper currencies, NZD and AUD have been beneficiaries as they start to shake off recent selling and climb up out of corrections.
Energy commodities also started to mount a comeback led by Brent and WTI crude although natural gas went the other way with the potential for unusually mild weather later in the week.
Japanese markets (Japan225 and JPY pairs) have the potential to be active through the week with a number of key indicators scheduled over the next few days kicking off today with employment and retail sales. Heading into these reports, JPY has been mixed, strengthening against USD while weakening against EUR. Japanese stocks have been choppy with the prospects of a higher yen undermining interest in exporters.
The India 50 may also be active today with an interest rate decision on the way. Anticipation of a rate hike, has weighed on the index lately.
Apple’s earnings came in well above expectations sending a positive tone from corporate earnings into trading. September’s spectacular iPhone launch contributed to the results and it looks like the company may be looking for a repeat with the new iPad lines it launched last week.
Apple EPS $8.26 vs street $7.92, Revenues $37.4B vs street $36.8B. Sales guidance $55-$58B vs street $55.4B
Highlights of overnight announcements include:
US industrial production 0.6% vs street 0.4%
US manufacturing production 0.1% vs street 0.3%
US pending home sales 1.1% vs street 3.6%
Upcoming significant announcements include:
10:30 am AEDT Japan unemployment rate street 4.0%
10:50 am AEDT Japan retail sales street 1.8%
4:30 pm AEDT India interest rate decision street 0.25% increase to 7.75%
8:00 am GMT Spain retail sales previous (4.2%)
9:30 am GMT UK mortgage approvals street 66K
1:00 pm GMT Hungary interest rate decision street 0.2% decrease to 3.40%
8:30 am EDT US producer prices street 0.6% vs previous 1.4%
8:30 am EDT US retail sales street 0.0%
8:30 am EDT Canada industrial prices street (0.1%)
8:30 am EDT Canada raw material prices street (0.5%)
10:00 am EDT US consumer confidence street 75.0
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