A week that started with great enthusiasm is finishing on a more subdued note. Having touched new all-time highs yesterday, index futures for the Dow and S&P 500 along with the FTSE are down marginally. Continental indices are giving back more of the week's gains, with the Dax and CAC down about 0.6% as the terrorist attack in France weighs on sentiment a bit.
Asia Pacific markets finished the week stronger, with the Nikkei up 0.7% and the Hang Seng up 0.5%. Better than expected GDP, retail sales and industrial production helped to maintain support for stocks. Positives from good China data haven't carried through to commodities however, with WTI crude oil falling 0.6% and copper holding steady.
There's a lot of news due this morning, which could move the markets. UK construction data for the last two months was not as bad as feared or as bad as previously reported, helping sterling continue its recovery.
It's a big day for US bank earnings. Building on yesterday's positive surprise from JPMorgan (NYSE:JPM), Citigroup (NYSE:C) has posted a big positive surprise. US Bancorp (NYSE:USB) and PNC Bank have beaten the street as well this morning, while Wells Fargo (NYSE:WFC) met expectations.
There's also a lot of US economic data due, headlined by retail sales and consumer prices. Fed speakers this week have been suggesting they are in no hurry to raise rates again, but with wage pressures starting to increase, any signs of rising inflation could change that tune.
At the moment it looks like the Fed would prefer to hold off on a decision until at least December after the US election. Meanwhile, retail sales could indicate the strength of the US consumer economy, which could influence earnings expectations.