Yesterday’s sharp but short rally in US stocks off the dovish FOMC minutes didn’t last long at all. While it helped stocks in Australia to rise, the effect had already faded by the time European trading started with major indices there trading lower today for the most part except the Dax which has posted a small gain. US indices have also started to drop back this morning, confirming yesterday’s afternoon gains as a dead cat bounce with the short burst of unsustainable euphoria more like a bear market relief rally. Even a positive start to earnings season with nice surprises from Alcoa and Pepsico hasn’t been enough to keep the rally going, indicating that bears continue to gain the upper hand. The correction in USD, however has continued overnight. Gold is up another 1.5% today and trading above $1,225 although crude oil has not participated and WTI remains stuck well below $90.00 while Brent tests that key round number. USD is sliding against all other paper major currencies in a long overdue correction as the big rally of recent weeks had left it very overbought technically and vulnerable. Resource currencies have capitalized the most on this retrenchment with NZD and AUD soaring over 1% overnight which is understandable as they had been hit the hardest recently. CAD is also climbing today in line with GBP which is following broader currency market trends following an uneventful Bank of England meeting. Today, we could see significant action in the stocks of companies that had news overnight, and some retrenchment in indices as traders take profits against yesterday’s rally. The USD correction may continue through the morning, but with so many central bankers speaking this afternoon, we could see some movement in currency markets through the day. Later on, Hong Kong could come into focus after the government put off talks with student demonstrators. Corporate News Alcoa $0.31 vs street $0.22 Pepsico $1.36 vs street $1.29 Gap Sept same store sales flat below street 1.2%, new CEO to take over Feb 1st Apple Carl Icahn has sent out an open letter calling for a larger share buyback Economic News Economic reports released overnight and this morning include: UK monetary policy decision no change to interest rate or QE as expected US jobless claims 287K vs street 295K Canada new house prices 0.3% vs street 0.1% Australia employment change (29K) vs street 15K vs previous revised down to 32K Australia full time jobs 21K vs previous 14K Australia part time jobs (51K) vs previous 106K Greece unemployment rate 26.4% vs street 26.8% Greece consumer prices (1.1%) vs street (0.3%) Germany trade balance €14.1B vs street €17.7B Economic reports due later today include: 10:30 am EDT US natural gas storage street 109 BCF Lots of central bank speakers on today including Fed Vice-Chair Fischer, ECB President Draghi, Riksbank Governor Ingves and FOMC members Tarullo, Lacker and Williams