Stockpair traders should keep an eye on these events today:
AUD CPI (QoQ)
CNY Chinese HSBC Manufacturing PMI
EUR German Manufacturing PMI
CAD Core Retail Sales (MoM)
USD New Home Sales
NZD Interest Rate Decision
Chinese Manufacturing PMI and Australian CPI Miss Expectations
This morning markets are reeling after Chinese HSBC Manufacturing PMI and Australian Inflation both missed the marks. Chinese PMI reported in at 48.3 against expectations of 48.4 indicating a continued contraction in manufacturing. The Aussie fell 82 points to trade at 0.9284 after inflation printed at 0.6% when traders were expecting 0.8%. The NZD fell along with the Aussie to trade at 0.8602. Yesterday Wall Street exchanges were up with higher volume Tuesday, with the NASDAQ and S&P 500 notching their sixth straight gains amid a flurry of buyout activity in the drugs industry. The NASDAQ rose 1%, while the S&P 500 and the Dow Jones industrial average each rose 0.4%. Volume rose 19% on the NASDAQ and 15% on the NYSE compared to Monday, according to preliminary data. McDonalds the fast-food giant reported that sales in the United States continue to decline. Its first-quarter earnings fell well short of analysts’ expectations. McDonald’s blamed bad weather for its disappointing results, but it also said “challenging industry dynamics” are eating into profits. McDonald’s said it expects global sales to improve in April as the weather in the United States returns to normal.
Investors were also encouraged by McDonald’s sales growth in Europe, which accounts for 35% of its overall revenue, notes Jack Russo, an analyst at Edward Jones. And McDonald’s reported “solid” sales growth in China. But the company’s core market remains under pressure. McDonald’s said sales at U.S. stores open at least one year were down 1.7% in the first quarter.
Weather in the US was the prime blame for lackluster data releases in January, February and early March. Since the winter thaw, economist seems to have been right to blame the weather. As soon as temperatures climbed data has turned extremely positive supporting a full recovery.
Yesterday, US housing data showed that existing home sales climbed to 4.59million homes against expectations of 4.55million. Although the 4.59m was below long term averages but shows a steady growth in the housing market.
Huge deal-making in the pharmaceutical sector have given European stocks a shot in the arm, even though tension over the crisis in Ukraine lurked in the background, traders say.
London’s FTSE 100 gained 0.85 per cent to 6,681.76 points compared to Thursday’s closing level – the last trading day before European markets closed for Easter. Germany’s DAX 30 soared 2.02 per cent to 9,600.09 points while the CAC-40 in Paris gained 1.18 per cent to 4,484.21 points.
In foreign exchange deals on Tuesday, the euro rose to $1.3795 from $1.3793 late in New York on Monday. The European single currency fell to 82.00 British pence from 82.13 pence, while the pound advanced to $1.6821 from $1.6791 on Monday. On the London Metals Exchange, the price of gold fell to $1,282.50.