As the North American session begins, the JPY is the strongest and the GBP is the weakest. The flash PMI data is Europe were generally a little better. The services PMI in the Eurozone moved back above the 50.0 level at 50.7. The services index had been below the 50 level for 4 consecutive months. . The manufacturing PMI was stronger than expected and last month, but still below the 50 level for 7th consecutive month. The German consumer confidence rose for the fourth consecutive month giving Europe some hope for recovery as they averted the natural gas shortage due to milder weather (at least for now). Another European news, they are closer to sending tanks to Ukraine. Will that do to Russian aggression?
Later today, the flash services and manufacturing PMI will be released for the US the expectations for both the services and manufacturing to remain below the 50.0 level (45.0 and 46.0 respectively versus 44.7 and 46.2 last month). The Richmond Fed manufacturing index that 10 AM with the composite index expected to decline to -5 versus 1 last month.
Be aware that in the new trading day in their respective countries, both New Zealand and Australia will release their CPI data for the quarter (New Zealand will report at 4:45 PM ET. Australia will report at 7:30 PM ET). New Zealand is expected to report a 1.3% QoQ gain versus 2.2%. Australia is expected to report 1.6% QoQ versus 1.8%, and 7.6% YoY versus 7.3% last quarter. Both inflation measures are well above the targets for central banks.
US stocks are lower as the morning earnings were mostly on the negative side
In earnings this morning:
- J&J had better EPS but was light on revenues
- 3M missed on the top and bottom line
- Verizon EPS came in as expected and beat on revenues. The guidance was lighter than expections at $.4.55-$4.85 vs $4.97 expected).
- Lockhead Martin beat on the top and bottom line
- Halliburton saw EPS beat and revenues come in as expected
- Raytheon beat on top line EPS but was light on the bottom line revenues
- GE beat on both the top and bottom line today
After the close Microsoft will be the first big tech megacap company to report their earnings
In other markets, the snapshot of the market is showing:
- Spot gold is up $6.41 or 0.33% at $1937.01.
- Spot silver is trading up $0.24 or 1.05% or $23.68
- WTI crude oil is trading of $0.48 at $82.10
- Bitcoin is trading just shy of $23,000 at $22,972. The high price it did extend to $23,162. The high price over the weekend reached $23,362
The premarket for US stocks, the major indices lower after two solid days to the upside saw the NASDAQ index increased by over 2% on each of the days (+2.66% and +2.01% respectively
- Dow Industrial Average is trading down 87 points after yesterday to 254.07 point rise
- S&P index is down 10.4 points after yesterday's 47.22 point rise
- NASDAQ index is down 49 points after yesterday's 223.98 point rise
In the European equity markets, the major indices are trading mixed
- German DAX -0.27%
- France's CAC +0.05%
- UK's FTSE 100 -0.24%
- Spain's Ibex unchanged
- Italy's FTSE MIB unchanged
In the Asian-Pacific market, China remains on lunar holiday with the markets closed:
- Japan's Nikkei rose 1.46%
- New Zealand 50 index fell -0.13%
- Australia's S&P/ASX index +0.44%
In the US debt market yields are modestly lower:
- 2 year 4.231%, -0.8 basis points
- 5 year 3.611% -1.4 basis points
- 10 year 3.509% -1.3 basis points
- 30 year 3.680% -1.0 basis points
in the European debt market, the benchmark 10 year yields are moving lower by about one – two basis points