Europe There is likely a slight holiday affect today as investors scale out of their more aggressive positions perhaps including covering short positions in growth stocks before Good Friday. Weak credit and money supply data from China yesterday had investors expecting the worst for today’s Chinese economic numbers. In the end the market impact in Europe was minimal with GDP and retail sales beating expectations while industrial production missed. Markets have one eye on the situation in Ukraine which appears to be rapidly deteriorating with relations between Russia and the US increasingly fraught with Europe unwillingly stuck in the middle. Today there has been no notable escalation from yesterday’s military operations. UK unemployment declined more than expected dropping below the Bank of England’s 7% threshold at 6.9% while the cost of living crisis is put on hold as average earnings are now increasing at a greater rate than consumer price inflation. European CPI data remained flat at 0.5% annually but picked up in the last month with an increase of 0.9% against last month’s 0.3% indicating the second quarter may see a pickup and delay the need for the ECB to act to curb potential deflation. Tesco shares moved higher today with the company’s first decline in profits in 20 years not as bad as expected. Burberry reported a 19% growth in revenue for the quarter with strong sales in China. The company did again warn about currency risks for future earnings but currencies nor the difficult consumer environment in China appear to have made much of a dent on earnings so far. Persimmon gained as the house builder reported sales increased by 38% in the last year. It has been a good time to be building houses with rapidly rising sales and houses prices rising on average 9.1% across the UK. US Industrial production in March improved more than expected with a revision to February doubling the previously reported figure. Manufacturers and Producers have clearly responded to the pent up demand from consumers after the cold weather spell this winter. Housing starts improved at a slower rate than forecast in the US with building permits declining. Later in the session Janet Yellen talks ahead of the release of the Fed’s beige book. Bank of America beat first quarter earnings estimates with earnings per share of $0.35 and revenue of $22.8 billion. There was a net revenue loss of $276 million and the bank took a hit from a $6 billion litigation expense affecting earnings by -$0.40 per share. Intel briefly pushed back above $27 which has been the high for 2014 by narrowly beating earnings estimates with 38c per share on revenues of $12.8bn. The decline in demand for PCs steadied in the last few quarters and the company grew its data center business while still trying to push into the tablet space. FX The US dollar was mixed today, losing out to the high beta currencies of the British pound and Australian dollar and winning over defensive currencies like the Japanese yen and Swiss franc. A more dovish outlook from the bank of Canada saw USDCAD move higher clearing above 1.10. GBPUSD was testing highs of 1.3820 after the better than expected UK employment report 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.