Markets around the world are moving in different directions today as different traders respond to different developments.
In stocks, European indices
are broadly trading higher while US indices are mixed this morning. Overnight, a ceasefire deal was reached for Ukraine while for Greece, some progress was made but there was still some disagreement on wording so everyone will take another kick at the can on Monday (with behind the scenes talks likely through the weekend). Expectations for the Greek talks were really low so any sign of progress was taken as a positive, boosting the Athens index nearly 5%, sending the Greek 10-year treasury yield back under 10.00% and helping EUR to regain some lost ground.
Traders in the US don’t appear to know what to make of today’s US economic reports. US headline retail sales and jobless claims were big disappointments. The Dow and S&P are trading lower while the NASDAQ and Russell 2000 are trading higher.
It’s possible that the first two indices may be falling on concerns about a weakening economy while the latter two indices could be responding more to the flood of earnings that has come out overnight which saw positive news from Cisco and negative news from Tesla Motors headline a huge slate of results.
Today is also a big day for earnings reports out of Canada. A big restructuring at Bombardier may capture the most attention along with a poor outlook from Precision Drilling. On the other hand, two of the big three insurers beat the street
Currency markets are also mixed this morning. SEK is the worst performer among majors after the Riksbank surprised the street taking interest rates negative. GBP is the top performer which comes as a bit of a surprise after the Bank of England indicates it only expects to raise rates by 0.50% over the next two years, cut its inflation forecast and left the door open to easing if needed. JPY is also strong today on reports the Bank of Japan thinks additional monetary stimulus would be counterproductive.
In resource currencies, a rebound in oil is helping CAD to rebound but not NOK which appears to be getting dragged down by its neighbour SEK’s selloff. AUD has been sliding on a weaker than expected Australian employment report.
There’s lots of news still to come this week, especially GDP reports from across Europe tomorrow, along with earnings reports, more speculation surrounding Greece and positioning ahead of a long weekend in the US and much of Canada which could keep trading active right thorough today and tomorrow.
Tesla Motors Huge miss! ($0.13) vs street $0.30, sales $1.1B vs street $1.2B, deliveries 9,834 vs street 11,140, expects to deliver 55,000 cars in 2015? Q1 forecast production 10,000 cards, deliver 9,500 cars
Cisco Systems $0.53 vs street $0.51, 10% dividend increase
Nvidia $0.43 vs street $0.28, sales $1.25B vs street $1.20B
Baidu $1.61 vs street $1.67
NetApp $0.75 vs street $0.77, guides next Q to $0.70-$0.75 vs street $0.89
Sun Life $0.83 vs street $0.77
Great West Life $0.66 vs street $0.65, raises dividend by 6%
Manulife Financial $0.36 vs street $0.41
Bombardier Big Shakeup! appoints new CEO from outside, suspends dividend, plans $500M equity offering and $1.5B new debt offering, may sell some businesses
Telus $0.51 vs street $0.53
Precision Drilling $0.23 in line, sales $618M vs street $624M, expects lower drilling activity and pricing pressure in 2015
Teck Resources $0.20 vs street $0.22
Yamana Gold ($0.02) vs street $0.03, 13% dividend cut
TransCanada US House passed Keystone XL bill but President Obama has indicated he plans to veto it.
Economic reports released overnight and this morning include:
Sweden interest rate (0.10%) surprise cut to (0.10%) no change was expected
UK BoE inflation report Cuts 2014 inflation forecast to 0.5% from 1.5%, above 2% end 2017
Expects oil prices to trend back up toward $70
Expects 1.00% interest rate by early 2017, leaves door open to rate cuts and more QE in short term if needed
World Gold Council 2014 gold demand (4%), investment demand 2%, bars and coins demand (40%), central bank demand 17%, mine supply steady
US retail sales (0.8%) vs street (0.4%)
US retail ex auto and gas 0.2% vs street 0.4%
US jobless claims 304K vs street 287K
Canada new house prices 1.7% as expected
Germany consumer prices (1.3%) as expected
Sweden unemployment rate 8.4% vs street 8.1% vs previous 7.0%
Eurozone industrial production (0.2%) vs street 0.3%
Greece unemployment rate 25.8% vs street 25.7%
Australia inflation expectations 4.0% vs previous 3.2%
Australia employment change (12K) vs street (5K)
Australia full time jobs (28K) vs previous 41K
Australia part time jobs 15K vs previous (4K)
Australia unemployment rate 6.4% vs street 6.2%
NZ Business PMI 50.9 vs previous 57.7
Japan producer prices 0.3% vs street 1.1%
Japan machine orders 11.4% vs street 5.6%
Economic reports due later today include:
10:30 am EST US natural gas street (168 BCF)