US traders returned from a holiday weekend in a positive mood. Big cap indices resumed their upward course reaching new all-time highs. More importantly, the Russell 2000 finally broke out and confirmed the advance a sign the rally has increasing breadth and strength along with the Dax
breaking out to the upside.
WTI crude oil also broke to a new high heading into tomorrow’s OPEC review of compliance with production cut promises. Natural gas, on the other hand, took a 6% hit on unseasonably high temperatures in consuming regions 10-15 degrees C above normal in some areas reducing heating demand. Traders should note that US oil inventories are out a day later than usual this week due to the holiday.
Traders responded positively to earnings reports from Home Depot and Wal-Mart, while Macy’s was flat. After the close, First Solar beat the street while Newmont disappointed and copper retreated which could impact sentiment toward mining stocks today. AUD could be active around Australia inflation and construction data.
The US Dollar strengthened on rising expectations that March could be a live meeting for a potential interest rate increase following comments from Philadelphia Fed President Harker. This move put most other currencies back on their heels including AUD, NZD, JPY and especially EUR. Tomorrow, comments from Jerome Powell a permanent FOMC voter who doesn’t speak very often and minutes of the last Fed meeting could spark more Fed related trading activity in currency markets.
GBP remains resilient amid continuing debate over the Brexit bill in the House of Lords. Sterling could be active Wednesday around the UK GDP update while CAD could be active around Canadian retail sales.
First Solar $1.24 vs street $1.00
Newmont Mining $0.25 vs street $0.34
Significant announcements released overnight include:
US Markit flash manufacturing PMI 54.3 vs street 55.3
US Markit flash services PMI 53.9 vs street 55.8
France flash manufacturing PMI 52.3 vs street 53.5
France flash service PMI 56.7 vs street 53.9
Germany flash manufacturing PMI 57.0 vs street 56.0
Germany flash service PMI 54.4 vs street 53.6
Japan flash manufacturing PMI 53.5 vs previous 52.7
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 AEDT Australia wage price index street 1.9%
11:30 am AEDT Australia construction work street 0.5%
7:00 am GMT Norway unemployment rate street 4.7%
9:00 am GMT Germany IFO business climate street 109.6
9:00 am GMT Germany IFO expectations street 103.0
9:00 am GMT Germany IFO current street 116.6
9:30 am GMT UK GDP update street 2.2%
10:00 am GMT Eurozone consumer prices street 1.8%
10:00 am GMT Eurozone core CPI street 0.9%
8:30 am EST Canada retail sales street 0.0%
8:30 am EST Canada retail ex auto street 0.6%
10:00 am EST US existing home sales street 5.55M
1:00 pm EST FOMC Powell speaking
2:00 pm EST FOMC meeting minutes