Daily Market Color 05/08/2013

Daily Market Color

05/08/2013

Economic Reports &Headlines

The global economic calendar is relatively light for today. Last night Chinese trade blew past expectations on all three fronts. The surplus surpassed estimates, 18.2bn Vs 14.0bn. Exports on a year over year basis grew 14.7%, markets expected 11.0%. Imports on a year over year basis grew 16.8% Vs 14.0%.  

Great Britain started the day off with a read on home prices via the Halifax House Price Index. The report blew past expectations on a month over month basis, 110bps Vs 20bps.

Switzerland, the landlocked country with approximately 8 million people in it, gave a read on consumer prices and they were flat on a monthly basis.

Industrial production in Germany surprised market participants for March on a month over month basis, 120bps Vs -10bps.

According to the Washington Post, the US federal debt limit may not need an increase until October due to the less spending and increased revenue collection

According to a report from Reuters, China’s central bank intends to curb speculative capital inflows.

According to the Fed, $716bn of credit flowed into households in 2012 Vs $336bn in 2011.  

       

Future Reports

This evening we will get a read on inflation in China. The consumer price index is expected to grow 220bps since last year in April.

Australia will release its read on employment conditions in its resource-rich country. The labor force survey is expected to show that 11k jobs were added to the economy

Tomorrow morning we will get a read on industrial production in Great Britain in addition to a monetary policy announcement from the Bank of England.

On the domestic front, jobless claims for last week are expected to come in at 335k.

Trades

US stocks are climbing in light of better than expected Chinese data and positive corporate earnings. I am will remain long stocks while looking for additional opportunities to get back into the Yen trade, or to just simply capitalize on a brand new trading idea.