Stocks bounce back as sideways trend continues
After two days of declines, stock indices in Europe and the US are on the rebound this morning, indicating that overall the sideways range bound trends of the last few months are continuing.
There was a brief spike in EUR and European indices earlier this morning on rumours that the Eurogroup could be willing to compromise with Greece, but they quickly dropped back when those rumours were squashed. This indicates though that traders have a hair trigger when it comes to acting on any Greece related reports that may emerge in the run up to tomorrow’s big meeting on the debt problems.
Crude oil has dropped back a bit today on a report from the International Energy Agency that indicated even though US production growth may slow in the short term, it is still expected to grow by around 1.6 mmbbl/d by 2020.
News flow is relatively light today, but corporate, economic and political news is expected to pick up as the week progresses so we may see traders continue to position on anticipation of upcoming developments.
Coca-Cola $0.44 vs street $0.42
Talisman Energy CFPS $0.49 vs street $0.41
Economic reports released overnight and this morning include:
Australia house prices 6.8% street 7.1%
China consumer prices 0.8% vs street 1.0%
China producer prices (4.3%) vs street (3.8%)
France industrial production (0.1%) vs street (1.3%)
Norway consumer prices 2.0% vs street 1.9%
Italy industrial production 0.1% vs street (0.7%)
UK industrial production 0.5% as expected
UK manufacturing prodn 2.4% vs street 2.0%
Economic reports due later today include:
10:00 am EST US wholesale sales street (0.3%)
12:45 pm EST Bank of Canada Wilkins speaking