Stock markets around the world have shrugged off Monday's jitters and are on the rebound this morning. The Hang Seng rallied for a 1.2% gain while in Europe, the FTSE, CAC, and DAX are all up about 0.5%.US index futures are up marginally.
News flow has been light this morning. The Conservatives continue to post a big lead over Labour in UK election polling. Germany posted a stronger than expected trade balance but this was offset by weaker industrial production. The last big week for earnings continues with the focus on smal and mid cap companies.
In commodities crude oil continues to hold on to its big bounce gains with traders hoping OPEC and non-OPEC countries will extend production cuts for more than another six months. Copper also appears to be stabilizing this morning.
In currency action, EUR is still backsliding as traders take profits against the Macron French election win. There appears to be a growing recognition that just because an immediate crisis has been averted doesn't mean it's all sunshine ahead either.
Open Text $0.45 vs street $0.50, sales $593M vs street $602M 15% dividend increase
Significant announcements released overnight include:
Germany industrial prodn 1.9% vs street 2.6%
Germany trade balance €25.4B vs street €21.5B
Upcoming significant economic announcements include:
8:30 am EDT Canada building permits street 2.8%
1:00 pm EDT FOMC Rosengren speaking
4:15 pm EDT FOMC Kaplan speaking