The fallout from yesterday’s decisions by the Bank of Japan and the Reserve Bank of New Zealand to take neutral stances on monetary policy rather than the dovish/stimulative stance traders had hoped for continued to impact trading across world markets.
With a neutral Fed not has hawkish relative to other central banks as seemed only a couple of days ago, and JPY plus NZD in rally mode, USD spent the day steadily sliding. The greenback retreat sparked a rally for gold that appears close to calling off a head and shoulders top while giving WTI crude oil the tailwind it needed to surge past $45.00/bbl with $50.00 looming ahead.
Rising commodity prices lit a fire under commodity stocks. The Canadian S&P/TSX finished the day flat outperforming major US indices which fell about 1.0%. Gains in Canada were led by gold producers which dominated the large cap leaderboard, plus Bombardier who nailed down a big $5B 125 jet order for its CSeries program from Delta Air Lines. With Cliffs Resources rallying 25% in the US, renewed interest in miners and other resource companies could carry through into today’s Australia trading.
Action in technology stocks was mixed today. Facebook’s strong earnings drove its shares to a 7.2% gains but Symantec lost 6.7% on a profit warnings while Apple fell another 3.1% on the news that Carl Icahn has sold all its shares on concern about slower China growth. After the close today, LinkedIn and Amazon.com posted very strong earnings and/or guidance which could attract attention overnight and into Friday. LinkedIn has gained 20% in aftermarket trading a big turnaround from last quarter’s massive post-earnings selloff.
It’s the last day of trading for April (wow where did the month go?) bringing another flurry of economic numbers that could move the markets including Eurozone GDP, CPI and employment figures, USD personal income and Chicago PMI, and Canada GCP plus producer prices as traders prepare for next week’s big PMI and payrolls reports.
Amazon.com $1.07 vs street $0.58 (wow!!!) sales $29.1B vs street $27.9B, guides next Q sales to $28.0-$30.5B vs street $28.3B
LinkedIn $0.74 vs street $0.60, guides next Q EPS to $0.74-$0.77 above street $0.71
Amgen $2.90 vs street $2.60, raises full year EPS guidance to $10.85-$11.20 from $10.60-$11.00.
Significant announcements released overnight include:
US Q1 GDP 0.5% vs street 0.7 and previous 1.4% US Q1 personal consumption 1.9%% vs street 1.7% and previous 2.4% US core PCE inflation 2.1% vs street 1.9% vs previous 1.3%
US jobless claims 257K vs street 259K US natural gas storage 73 BCF vs street 70 BCF US Kansas City Fed (4) vs previous (6)
Canada CFIB bus barometer 59.2 vs previous 52.3
UK Nationwide house prices 4.9% vs street 5.0% and previous 5.7%
Germany unemployment chnge (16K) vs street 0K Germany unemployment rate 6.2% as expected Germany consumer prices 0.1% as expected
Norway unemployment rate 4.6% vs street 4.8% Norway retail sales (0.7%) vs street 0.4% Sweden retail sales 1.9% vs street 3.5% Greece retail sales (7.3%) vs street (2.0%)
Spain consumer prices (1.1%) vs street (0.7%)
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)
11:00 am AEDT NZ ANZ activity outlook previous 29.4 11:00 am AEDT NZ ANZ bus confidence previous 3.2
11:30 am AEDT Australia producer prices previous 1.9%
7:00 am BST Germany retail sales street 2.7% 7:45 am BST France consumer prices street (0.1%) 8:00 am BST Spain GDP street 3.3% 9:00 am BST Norway unemployment rate street 3.3% 9:00 am BST Italy unemployment rate street 11.6%
10:00 am BST Eurozone unemployment rate street 10.3% 10:00 am BST Eurozone consumer prices street (0.1%) 10:00 am BST Eurozone core CPI street 0.9% 10:00 am BST Eurozone GDP street 1.4% vs previous 1.6%
6:30 am EDT FOMC Kaplan speaking
8:30 am EDT US Q1 employment cost index street 0.6% 8:30 am EDT US personal income street 0.3% 8:30 am EDT US personal spending street 0.2% 8:30 am EDT US core PCE inflation street 1.6%
8:30 am EDT Canada Feb GDP street 1.5% 8:30 am EDT Canada industrial prices street 0.5% vs previous (1.1%) 8:30 am EDT Canada raw material prices street 3.7% vs previous (2.6%)
9:45 am EDT US Chicago PMI street 52.6 10:00 am EDT US consumer sentiment street 90.0