The main trading action overnight has been in energy markets where WTI and Brent crude oil plus heating oil have all rallied 1.4%. Natural gas is up 2.9% despite warm conditions in consuming regions while gasoline is up 1.0%. Renewed interest in energy was sparked late yesterday afternoon when API reported a 0.9 mmbbl drawdown signalling the record breaking multimillion barrel build up of stockpiles in recent weeks may finally be ending. Oil may remain active through the DOE weekly inventory reports due at 1030 am EST with a 3.5 mmbbl increase for crude oil currently expected by the street.
Stock markets have been steady overnight. U.S. index futures are up marginally while the Dax, FTSE and Nikkei are down marginally. There was no major economic or political news overnight. It's still not clear if the Fed is planning to raise rates in March or not. It does look the announcements on tax and health care reform may not come until March leaving me wondering if traders patience can last that long.
Currencies have been mixed overnight. EUR is under pressure relative to USD and GBP again as French polls show Euroskeptic Marine Le Pen adding to her first round lead. Other majors are trading slightly higher or slightly lower relative to USD.
Canadian banks could attract attention today after CIBC kicked off their earnings season with a bang. CIBC reported adjusted EPS of $2.89 well above the $2.60 street estimate. It also raised its dividend slightly. Loblaw's (TO:L) report was mixed with a small miss on earnings potentially offset by a small beat on sales.