S markets have been trending lower overnight with another selloff in China weighing on world stock markets. Concerns that China’s stock market rout could destabilize its economy in transition and impact resource demand continues to drag on commodities today, particularly copper which has broken down to its lowest level since 2009.
US stocks may be mixed today as traders try to decide whether to focus on weaker than expected results and guidance out of Wal-Mart, or better than expected results and better guidance out of Home Depot.
Homebuilders may also attract attention from traders today with better than expected housing starts building on yesterday’s increase in the housing market index indicating a positive environment for the sector.
GBP has turned in a stellar performance as top dog in currency trading today, getting a boost from higher than expected UK core inflation, which has increased the pressure on the Bank of England to accelerate its timetable for interest rate liftoff.
On the other hand, AUD has been weakening after RBA minutes indicated the weaker dollar can help the economy particularly the export sector. With China, Australia’s biggest export customer, struggling, the central bank may want to keep AUD and interest rates low for some time to come. CAD is steady against USD today with WTI crude also pretty much flat.
Wal-Mart $1.08 vs street $1.12, next Q guidance $0.93 - $1.05 below street $1.08, full year guidance $4.40-$4.70 below street $4.76. sales $120.2B vs street $119.7B
Home Depot $1.71 as expected, sales $24.8B vs street $24.7B, raises full year EPS guidance to $5.31-$5.36 from $5.24-$5.27 guides sales growth 5.2-6.0% up from 4.2-4.8%
Significant announcements released overnight include:
UK consumer prices 0.1% vs street 0.0%
UK core CPI 1.2% vs street 0.9%
UK retail prices 1.0% s expected
UK producer input prices (12.4%) vs street (12.7%)
UK producer output prices (1.6%) vs street (1.5%)
UK ONS house prices 5.7% unchanged
Poland employment 0.9% as expected
Poland average gross wages 3.3% vs street 3.5% vs previous 2.5%
US housing starts 1,206K vs street 1,180K
US building permits 1,119K vs street 1,225K
Upcoming significant announcements include:
There are no major announcements scheduled for North America later today
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