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
Colin Cieszynski