continued their broad advance overnight, led by the Hang Seng, which along with a second day of big gains for base metals indicates improving sentiment toward the Chinese economy.
Gains carried through into early morning trading in Europe and North America but indices have slipped back a bit and gold has rebounded in the last hour on reports that two Ukrainian military fighter jets have been shot down. This indicates that despite last week’s MH17 tragedy, outcries from western governments and the threat of sanctions (which may or may not come about), separatists have been emboldened not chastened. Because of this, the risk of further conflict and economic disruptions continues to rise which could impact trading at any time in the coming days and weeks.
Earnings reports continued to roll in overnight and could spark significant trading action in specific shares today. Boeing and Intuitive Surgical beat the street by wide margins, while MicroSoft and Whirlpool came in short. Apple’s report was mixed with some aspects better than expected and some disappointments as well. Through the day we may also see positioning in Facebook and Qualcomm ahead of tonight’s reports.
Rising base and precious metals prices and steady energy has lit a fire under resource currencies today with AUD leading the way while SEK and CAD also post gains.
NZD is also trading higher and may be particularly active today ahead of and around today’s RBNZ decision. The central bank is widely expected to announce a fourth straight 0.25% rate increase, but dairy prices (a big export item for NZ) have been falling along with the Kiwi Dollar, taking some of the pressure off them. If they do follow through on an increase, traders may look to the statement for signs of whether they would then be done for now or not.
BCE announced plans to buy out the minority shareholders in Bell Aliant and take it all in-house for $3.95B.
Boeing $2.24 vs street $1.78, raises FY guidance to $7.90-$8.10 from $7.15-$7.35.
Apple $1.28 vs street $1.23, sales $37.4B vs street $38.0B, guidance $37-$40B vs street $40.6B iPhone sales increased but iPad sales fell. New products rumoured to be coming this fall include iPhone6 including larger screen versions and a wearable device
MicroSoft $0.55 vs street $0.60, sales $23.38B vs street $22.99B
Electronic Arts $0.19 vs street ($0.03), sales $775M vs street $713M, guides nesxt Q to $0.50 vs street $0.52
Intuitive Surgical $3.73 vs street $2.82, sales $512M vs street $501M
Whirlpool $2.62 vs street $2.92, cuts FY guidance to $11.50-$12.00 from $12.00-$12.05
Pepsico $1.32 vs street $1.23
Economic reports released overnight and this morning include:
Australia consumer prices 3.0% as expected
Singapore consumer prices 1.8% vs street 2.4% vs previous 2.7%
UK house purchase loans 43K vs street 41K
UK CBI sales 21 vs street 15 vs previous 4
Canada retail sales street 0.6%
Canada retail ex auto street 0.3%
Economic reports due later today include:
Facebook, Qualcomm, Citrix, Gilead Sciences, AT&T and others report earnings after 4:00 pm EDT.
10:30 am EDT US crude oil inventories street (2.9 mmbbls)
5:00 pm EDT NZ interest rate 0.25% increase to 3.50% expected
6:45 pm NZ trade balance street $100M