UK and European traders have returned from their long weekend in a relatively good mood with indices climbing. Athens is leading the way with a 3.0% gain after the government reached a technical deal with the EU on reforms to unlock more bailout funds. The FTSE is up 0.4% boosted by stronger than expected UK manufacturing PMI while continental countries were in line with expectations.
In North America, today, the focus is back on earnings while macro traders await tomorrow’s FOMC statement.
Results continue to come in positive led by big drug companies. Pfizer and Merck (NYSE:MRK) both beat the street while Merck also raised guidance. Big energy results were mixed with EnCana posting huge numbers while ConocoPhillips (NYSE:COP) posted a surprise loss. Cummins (NYSE:CMI) and MasterCard continued runs of strong reports from Financials and Industrials. Apple (NASDAQ:AAPL) results are due after the close today which could mark a turning point for the NASDAQ. Dow and S&P futures are steady indicating.
In currency trading, gold has stabilized at a lower level, digesting yesterday’s selloff. GBP and EUR are both up slightly. CAD is bouncing back a bit with crude oil rebounding. Yesterday’s slide on the return of Libya’s biggest oil field to production appears to have quickly run its course. Energy traders’ focus has shifted back to this month’s OPEC meeting and the potential for production cuts to be extended. Meanwhile, reports indicate Russia is close to reaching its production cut targets and apparently is open to talking about an extension.