Global markets have been trading flat to moderately lower with soft IFO survey results out of Germany weighing on sentiment while traders await Friday's speech from Fed Chair Yellen. US index futures are down 0.1% with the FTSE down 0.4% and the Dax down 0.8%. Crude oil is up 0.2% while gold and other major currencies trading within 0.3% on either side of flat.
The focus for trading today is mainly on individual stocks and groups. Two more Canadian banks have reported today. CIBC beat the street by a wide margin reporting EPS of $2.67 way above the street which was at $2.35. Stellar results from retail and business banking led the charge. A small 7% increase over year in loan loss provisions were blamed on individual and card loans.
TD Bank reported earnings of $1.27 above street $1.21. Growth was driven by gains in US retail banking, TD Ameritrade and wholesale banking while Canadian retail was flat, reminiscent of the Bank of Montreal's report From Tuesday. Overall, Canadian banks have been reporting strong results with US operations and capital markets outperforming a steady Canada banking environment.
In the UK today Entertainment One, the producer of Peppa Pig is down 16% after ITV dropped its £1.0B hostile takeover bid.
US markets could be active around today's durable goods orders report. While US consumer spending has been really strong in recent months, traders may look to these numbers for signs of whether consumer momentum is carrying over into industry or not. Because of this, the capital goods nondefense ex air measure may attract particular attention this time around.
ITV drops its £1.0B takeover offer for Entertainment One, producer of Peppa Pig
CIBC $2.67 vs street $2.35
TD Bank $1.27 vs street $1.21
Germany IFO business climate 106.2 vs street 108.5
Germany IFO current assessment 112.8 vs street 114.9
Germany IFO expectations 100.1 vs street 102.4
UK CBI reported sales 9 vs street 0 vs previous (14)
UK CBI distributor sales 17 vs previous (11)
Spain GDP 3.2% as expected
Sweden unemployment rate 6.3% vs street 5.9%
Upcoming significant economic announcements include:
8:30 am EDT US jobless claims street 265K
8:30 am EDT US durable goods orders street 3.4% vs previous (3.9%)
8:30 am EDT US durables ex transport street 0.4% vs previous (0.4%)
8:30 am EDT US capital goods nondef ex air street 0.3% vs previous (0.2%)
9:45 am EDT US flash services PMI street 51.8
10:30 am EDT US natural gas street 18 BCF
11:00 am EDT US Kansas City Fed street (2)
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