Daily News Report

Markets in a Flash

• The EUR is starting to push higher this morning and is gaining against the USD, JPY and GBP.
• US equity futures are higher this morning following the European advance and indicating a rise in equity prices at the bell.
• Oil is trading over +1% higher this morning and is above $86.00. Gold is continuing to rise slowly and is at around $1230.00.
• Asian markets finished mixed overnight. Chinese markets rose while Japanese markets fell.
• European equity markets are up in their morning trading regaining some of the past few days losses.

News Focus

Home Depot Beats Estimates

The US’s largest home improvement store, Home Depot Inc, has reported figures that are better than analysts had expected. The Company reported earnings per share of 72 cents compared with analysts’ expectations of 71 cents, this has been boosted by an increase in sales revenue generated by its well established stores. This better that expected performance may suggest that consumers are spending more on the housing market and may be a sign of an increase in health in the property market.

Potash Corp Rejects Bid

Potash Corp, the world largest fertilizer producer has rejected a takeover bid made by BHP Billiton. The unsolicited bid of $39Bn was turn down by the company as management saw it as undervaluing the company. Investors are speculating that BHP Billiton may return with a higher bid.

0830ET – Housing Starts

Starts - Level – SAAR

Previous 0.549 M
Consensus 0.565 M
Consensus Range 0.550 M to 0.585 M
Actual 0.546 M

This figure of 0.546M has come in less that consensus. It is also slightly less that the figure reported for last month.

0830ET – Producer Price Index

PPI - M/M change

Previous -0.5 %
Consensus 0.2 %
Consensus Range -0.2 % to 0.5 %
Actual 0.2 %

The figure has been reported as 0.2% which is what was expected by the market. This shows that in July there has been a slight rise in producers prices. This should not have much of an effect on the markets as the expected figure will have already been priced in.

Coming up Today

0855ET – Redbook

This weekly indicator is similar to the ICSC-Goldman Store Sales as it shows the health of retail sales but is less consistent.

0915ET – Industrial production

Production - M/M change

Previous 0.1 %
Consensus 0.6 %
Consensus Range 0.3 % to 1.0 %

This month’s figure is expected to show that industrial production rose in July after the previous month’s growth of 0.1 %. The trend for the past year has been of positive monthly growth figures. A further expansion will continue the growth trend. A higher that 0.6% figure will prove bullish for the markets as it will suggest the economy is in better health that expected.