Markets across Asia and Europe have been mixed overnight but US indices have been on the rebound this morning. Traders here have responded favourably to better than expected flash PMI reports for China and Germany which have also helped to shore up support for the Dax. The FTSE is trading slightly lower after UK retail sales disappointed. Earnings out of the US were generally positive with some big dividend increases although guidance was mixed. Earnings out of Canada this morning were disappointing in a number of cases which could keep Canadian stock and currency trading mixed particularly with the nation still reeling from yesterday’s attack against Parliament. Crude oil is trading up slightly today as WTI continues to find support above $80.00 and Brent near $85.00. The lack of follow through from yesterday’s big increase in US stockpiles suggests that high supply may be getting fully baked into prices. In currencies overnight, defensive plays are getting knocked back again, particularly gold and JPY. US spiked overnight but has been drifting back as the morning has progressed. CAD is drifting lower at a similar pace to GBP with sterling dragging as soft UK retail suggests a slowing Europe may be impacting the UK. The worst performer on the day has been NZD which is down over 1% with a big drop in NZ taking the pressure off the RBNZ to raise rates again any time soon. There’s still lots of news due with the US flash manufacturing PMI in particular focus along with Natural gas as heating season approaches. MicroSoft headlines tonight’s round of earnings reports. Corporate News Caterpillar $1.72 vs street $1.34, raises FY guidance to $6.50 from $6.20 Citrix Systems $0.75 vs street $0.73, guides FY EPS to $3.22 to $3.25 bringing up bottom from $3.20 Lam Research $0.96 vs street $0.93, guides next Q to $1.05 to $1.19 vs street $1.17 3M $1.98 vs street $1.96, narrows FY guidance to $7.40-$7.50 from $7.30-$7.55 General Motors $0.97 vs street $0.95 Union Pacific $1.53 vs street $1.51 Visa 20% dividend increase Pulte Group $0.37 vs street $0.36, 60% dividend increase Potash $0.38 vs street $0.41, sales $1.64B vs street $1.50B narrows 2014 FY guidance to $1.75-$1.85 from $1.70-$1.90 Rogers Comm $0.78 vs street $0.88, guides FY results to low end of previous ranges Shaw Comm $0.40 vs street $0.37 Cenovus Energy Cash flow/share $1.30 vs street $1.18, raises CFPS guidance for FY 2014 to $5.00-$5.15 from $3.95-$4.90 Husky Energy $0.50 vs street $0.58 Open Text $0.97 vs street $0.86 Economic News Economic reports released overnight and this morning include: US jobless claims 283K vs street 281K and previous 264K Japan flash manuf PMI 52.8 vs street 51.7 China flash manuf PMI 50.4 vs street 50.2 France flash manuf PMI 47.3 vs street 48.5 France flash service PMI 48.1 vs street 48.3 Germany flash manuf PMI 51.8 vs street 49.5 Germany flash service PMI 54.8 vs street 55.0 Eurozone flash manuf PMI 50.7 vs street 49.9 Eurozone flash service PMI 52.4 vs street 52.0 Spain unemployment rate 23.6% vs street 24.1% Sweden unemployment rate 7.2% vs street 7.9% UK retail sales 2.7% vs street 2.9% UK retail ex auto 3.1% vs street 3.4% UK house purchase loans 39K vs street 41K Norway interest rate 1.50% no change as expected Turkey interest rate 8.25% no change as expected NZ consumer prices 1.0% vs street 1.2% vs previous 1.6% Singapore consumer prices 0.6% vs street 0.9% Economic reports due later today include: 9:00 am EDT US house prices street 0.3% 9:45 am EDT US flash manuf PMI street 57.0 10:00 am EDT US leading index street 0.7% 10:30 am EDT US natural gas street 97 BCF TBA Bank of Canada Poloz and Wilkins press conference and testimony