Despite political risks growing overnight again with the US bombing militants in Iraq and another ceasefire in Gaza collapsing stock markets have been on the rebound this morning. A much better than expected trade report for China boosted by a big increase in exports has sparked some short covering that has shored up support for indices
in Europe and the US this morning. In currencies today, EUR and linked currencies like CHF and DKK are on the rebound while gold is getting knocked back a bit while still holding $1,300.
The news hasn’t all been good, however. The Nikkei fell 3.0% overnight after the Bank of Japan cut its expectations for output and exports. It also indicated that it is monitoring political risks and tried to talk the Yen down a bit. Similar news out of Australia where RBA minutes showed the central bank there also pulling back its growth and inflation outlook knocked the S&P/ASX back 1.3% although AUD held steady with monetary policy still in neutral.
The Loonie has seen the biggest and more recent action currency markets this morning, plunging a half a cent following a flatly terrible Canadian employment report. A big drop in full-time jobs was masked by a seasonal uplift in part-time jobs but overall, it appears that Canada continues to lag behind the US in job creation this year which could keep the Loonie trailing relative to the surging greenback for some time to come.
Tensions and turmoil in Ukraine, Russia, Iraq, Gaza and West Africa don’t appear to be getting any better and with conflicting economic reports and outlooks for different countries and regions, stocks and currencies may remain active through the day with the potential for more short covering or possibly afternoon reversals should traders decide to move to the sidelines ahead of the weekend.
Magna International $2.32 vs street $2.20
CBS $0.78 vs street $0.71, raises dividend by 25%
Nvidia $0.22 vs street $0.19
Computer Sciences $1.03 vs street $0.95
Economic reports released overnight and this morning include:
Japan interest rate and QE decision no changes as expected
Canada employment change 0.2K vs street 20K and previous (9K)
Canada full-time jobs (59.7K) vs previous 33K
Canada part-time jobs 60.0K vs previous (43K)
Canada unemployment rate 7.0% vs street 7.1%
China trade balance $47.3B vs street $27.4B
China exports 14.5% vs street 7.0%
China imports (1.6%) vs street 2.6%
Sweden unemployment rate 4.3% as expected
Germany trade balance €16.5B vs street €18.9B
France industrial production (0.4%) vs street (1.8%)
France manufacturing prodn 0.1% vs street (1.1%)
Sweden service production 2.6% vs street 2.8%
Sweden industrial production (1.1%) vs street (0.7%)
Sweden industrial orders (0.5%) vs previous (1.4%)
UK trade balance (£2.4B) vs street (£2.0B)
UK construction output 5.3% vs street 4.7%
Japan trade balance (¥537B) vs street (¥592B)
Australia home loans 0.2% vs street 0.6%
Economic reports due later today include:
9:30 pm EDT China producer prices street (0.9%)
9:30 pm EDT China consumer prices street 2.3%