he pattern of one day down one day up that has been in place since the UK, UK and Germany returned to trading on Tuesday has continued into this morning.
In the absence of any new major news on Greece or world economies, stock markets in the US and Europe are trading down moderately, giving back some of yesterday’s gains in normal trading. Greece expressed hope of a deal this weekend, but we’ve all heard that one before so traders are now back to a wait and see stance. Still, EUR and Greek treasuries have held on to yesterday’s gains so some of the Grexit fears appear to have subsided for now.
Similarly, USD has levelled off for now with the impact of durable goods orders now fully in the market. Overnight San Francisco Fed President Williams reiterated that interest rate liftoff is on the table at every meeting now, keeping focus on the Fed. Friday’s GDP report plus next week’s PMI and payroll reports may keep Fed speculation simmering away.
Currency markets are steady for the most part with the main story overnight being a selloff in both AUD and NZD in the wake of a big drop in private capital investment.
NOK has also been under pressure with oil backsliding while CAD has been steady against USD following yesterday’s Bank of Canada decision to keep interest rates steady. Crude oil and related markets could be active later this morning with both oil and natural gas inventories due. Canadian bank earnings continued their positive run with another three beating the street and one raising its dividend.
CIBC $2.28 vs street $2.24, 2.8% dividend increase
Royal Bank of Canada $1.61 vs street $1.59
TD Bank $1.14 vs street $1.11
Broadcom has agreed to be acquired by Avago for $37B through a combination of cash and shares, current shareholders to own 32% of the combined company
Economic reports released overnight and this morning include:
US jobless claims 282K vs street 270K
Canada industrial prices (0.9%) vs street (0.1%)
Canada raw material prices 3.8% vs street 1.6%
UK GDP 2.4% vs street 2.5%
UK private consumption 0.5% vs street 0.7%
UK house purchase loans 42.1K vs street 39.3K
Spain retail sales 4.0% vs street 2.6%
Spain GDP 2.7% vs street 2.6%
Norway unemployment rate 4.1% as expected
Australia private capex (4.4%) vs stret (2.2%)
Japan retail sales 5.0% vs street 5.5% vs previous (9.7%)
Economic reports due later today include:
10:00 am EDT US pending home sales street 10.9%
10:30 am EDT US natural gas storage street 99 BCF
11:00 am EDT US crude oil inventories street (2.0 mmbbls)
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