The AUD is the strongest and the USD is the weakest as the NA session begins. Overnight, China's GDP came in better than expected 4.5% versus 4% expected in 2.2% last quarter as their Covid restart kicks in. Meanwhile China's industrial production was we can expect a 3.9% versus 4.7% YoY, but retail sales impressed with a 10.6% versus 7.3% estimate. The unemployment rate fell to 5.3% from 5.5% completing the data dump out of China today.
In European news today
- Within the UK's employment data earnings came in higher than expected at 5.9% (weekly earnings 3M YY) vs 5.1% expected. The Average earnings ex bonus were also stronger at 6.6% versus 6.2% expected. Not so good news was the unemployment rate moved up to 3.8% versus 3.7%. Tomorrow the CPI data will be released with the expectation that inflation dips to 9.8% from 10.4%. The GBPUSD moved higher on the news today, and tests its 200 hour moving average at 1.24376 and 100 hour moving average at 1.24520 (see green and blue lines in the chart below). UK in 2010 yields are higher
- German ZEW economic sentiment came and we grew 4.1 versus 15.3 expected but current conditions got better -32.5 versus -40 expected (and -46.5 last month). The EURUSD is trading higher as North American traders enter for the day, but yields are lower in Europe.
In the US stock market, the major indices are trading higher:
- Dow Industrial Average is up 37 points after yesterday's 100.71 point rise
- S&P index is up 17.7 points after yesterday's 13.68 point rise
- NASDAQ index is up 95 points after yesterday's 34.26 point rise
In US earnings releases this morning:
- J&J beat on the EPS and revenues (EPS $2.68 versus $2.50 expected, revenues $24.746 billion versus $23.67 billion estimate. Shares of Johnson & Johnson are up 1.1% in premarket trading
- Bank of New York Mellon came in near expectations. Shares are trading down -1.42% in premarket trading
- Bank of America beat on EPS and revenues (EPS $0.94 versus $0.82 expected, and revenues net of interest expense $26.26 billion versus $25.4 billion expected. Shares are trading up 1.75% in premarket trading.
- Goldman Sachs beat on EPS but was short on revenues (EPS $8.79 versus $8.10 expected, revenues $12.22 billion versus $12.79 billion expected). The stock is down -3.4% in premarket trading.
- Lockheed Martin been on EPS and revenues (EPS $6.43 versus $6.08, revenues $15.13 billion versus $15.04 billion estimate). Shares of Lockheed Martin are up 1.5% in the premarket
Of interest to the markets, Netflix and United Airlines will report earnings after the close
In other markets:
- spot gold is trading back above the $2000 level at $2004 up $9.38 on the day.
- Spot silver is up seven cents or 0.28% at $25.12
- WTI crude oil is trading down $0.36 at $80.47
- Bitcoin is back above the 30,000 level at $30,412. Near 5 PM yesterday the price is trading at $29,445
In the European equity markets, the German DAX and France CAC are recovering from yesterday's declines. France had made new record highs four straight days before yesterday's corrective move lower:
- German DAX is up 0.63%
- Frances CAC is up 0.60%
- UK's FTSE 100 is up 0.07%
- Spain's Ibex is up 0.38%
- Italy's FTSE MIB +0.80%
In the US the debt market, yields are trading lower after yesterday's gains saw the two year rise about 9.1 basis points, and the tenure up 7.4 basis points after stronger Empire manufacturing data
- 2 year yield 4.60% -2.7 basis points
- 5 year yield 3.666% -2.7 basis points
- 10 year yield 3.571% -1.9 basis points
- 30 year yield 3.79% -1.5 basis points
The European debt market, the benchmark 10 year yields are much lower with the exception of the UK 10 year yield which is up about 3.0 basis points (reacting to the earnings increase):
