US markets have been building on yesterday’s rally and appear set to start today’s trading in the green once again as they bounce back within established trading channels. Yahoo and Intel both beat the street by a penny but traders have been more excited overnight about strong numbers from Yahoo’s stake in Chinese internet company Alibaba and the prospects for its upcoming IPO. Chinese economic numbers were mixed with GDP and retail sales beating the street while industrial production came up short. Overall there were no major negative surprises so this helped to shore up support for Chinese and Australian indices plus AUD. In currencies today, we continue to see some rotation out of defensive plays with JPY underperforming other majors and gold hanging around $1,300 support. GBP is topping the charts today rallying on the back of a much better than expected UK employment report which once again puts pressure on the Bank of England to start raising interest rates. CAD could be active later this morning. Although the Bank of Canada is not expected to change interest rates, the street may look to the statement or follow-on comments from Governor Poloz for an indication on direction, particularly any changes to his more dovish stance of late. Corporate News Yahoo! $0.38 vs street $0.37, Alibaba total revenues (YHOO owns 25%) $3.0B up 66%, net income doubles to $1.35B IPO coming soon Intel $0.38 vs street $0.37, no changes to guidance Economic News Economic reports released overnight and this morning include: China GDP 7.4% vs street 7.3% China industrial production 8.8% vs street 9.0% China retail sales 12.2% vs street 12.5% China fixed assets 17.6% vs street 18.0% UK jobless claims (30K) as expected UK unemployment rate 6.9% vs street 7.1% and previous 7.2% UK 3M employment change 239K vs street 90K US housing starts 946K vs street 970K US building permits 990K vs street 1010K Japan industrial production 7.0% vs previous 6.9% NZ consumer prices 1.5% vs street 1.7% Economic reports due later today include: 10:00 am EDT Canada interest rate decision 1.00% no change expected 10:30 am EDT Bank of Canada Governor Poloz speaks on monetary policy 9:15 am EDT US industrial production street 0.5% 9:15 am EDT US manufacturing production street 0.6% 10:30 am EDT US crude oil inventories street 1.75 mmbbls 10:30 am EDT US gasoline inventories street (1.75 mmbbls) 12:15 pm EDT Fed Chair Yellen speaking 2:00 pm EDT US beige book