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Focus on China following mixed Alcoa earnings report

Stock markets in the US and Europe traded positively through much of the day but US markets lost some ground in their last hour of exchange trading. After the close, Alcoa issued a mixed report beating the street strongly on earning but coming in a bit soft on sales. Unravelling mergers have also been in  the news again today with Canadian Pacific dropping its bid for Norfolk Southern, On the News, CP rallied for a 3% gain while Norfolk dropped 2.5% as merger related discounts and premiums went away.

Crude oil is coming off another big day that saw WTI taking another run at $40.00 as the big producers meeting in Qatar approaches. USD continues to weaken boosting gold and a number of currencies including GBP and NZD.

It’s relatively quiet for Asia Pacific news with China trade figures not out until tomorrow and GDP, industrial production and retail sales due later in the week. The uptick in producer prices yesterday was received positively by the street with an improved leading index overnight also suggesting that the Chinese economy may be starting to turn the corner.

Tomorrow morning a number of inflation reports are due from Europe, particularly from the UK which could influence trading in GBP and EUR pairs. In the US, import prices and the continuing parade of Fed speakers may attract some attention.

Corporate News

Alcoa        $0.07 vs street $0.02, sales $4.9B vs street $5.2B

Economic News

Significant announcements released overnight include:

China leading index        99.0 vs previous 98.1

Canada Bloomberg Nanos confidence        55.0 vs previous 54.7

Upcoming significant economic announcements include:

(Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore)  

11:30 am AEST        Australia NAB bus conditions    previous 8
11:30 am AEST        Australia NZB bus confidence    previous 3
4:00 pm AEST        Japan machine tool orders    previous (22.5%)

12:00 am GMT        UK same store sales        street 2.0% vs previous 0.1%

7:00 am GMT        Germany consumer prices    street 0.3%
8:30 am GMT        Sweden consumer prices    street 0.7% vs previous 0.4%

9:30 am GMT        UK consumer prices        street 0.4%
9:30 am GMT        UK core CPI            street 1.3%
9:30 am GMT        UK retail prices            street 1.4%
9:30 am GMT        UK producer input prices    street (6.2%) vs previous (8.1%)
9:30 am GMT        UK producer output prices    street (1.0%)
9:30 am GMT        UK ONS house prices        previous 7.9%

8:30 am EDT        US import prices        street (4.8%) vs previous (6.1%)

9:00 am EDT        FOMC Harker speaking
3:00 pm EDT        FOMC Williams speaking
4:00 pm EDT        FOMC Lacker speaking


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