Daily Market Color 05/14//2013

Daily Market Color

05/14//2013

Economic Reports &Headlines

 Last night, first quarter retail trade in New Zealand came in lower than consensus on a quarter over quarter basis, 90bps Vs 110bps.

Producer prices in Japan came in higher than expected in April, on a month over month basis, 30bps Vs 10bps.

At 2:00am this morning Germany released April’s consumer prices which came in line with consensus on a month over month basis, -50bps.

At 4:00am, Italy’s consumer price index report was released. Consumer prices in the country were unchanged on a monthly basis. Economists’ were expecting month over month increase of 10bs.

Industrial production in the Eurozone beat economists’ estimates on a month over month basis, 100bps Vs 60bps.

ZEW’s survey of economic conditions missed analyst forecast on both fronts. Current conditions: 8.9 Vs 10.9. Business Expectations: 36.4 Vs 40.0.

On the domestic front, export prices declined more than expected in April on a monthly basis, -70bps Vs -10bps. Import prices were in line with economists’ forecast at -50bps on a monthly basis.

Fitch raised Greece’s credit to B- from CCC with a stable outlook.

Future Reports

Ten minutes before the Japanese markets open, we will get a read on 13 major industries in Japan via the Tertiary index. Consensus is calling for a 70bps month over month decline in the report for March.

Wednesday will be a busy day for the global economic calendar. France, Germany, Italy, the European Monetary Union and Japan will be releasing GDP reports.

The UK will be releasing their labor market report. The jobless rate is expected to remain the same. The claimant count is expected to decline by 7k in April.

On the domestic front, we will get a read on producer prices at 8:30am. Consensus is calling for a month over month drop of -70bps in April.

The New York Fed will release their Empire State Manufacturing survey at 8:30am as well. Markets are expecting the report to give a reading of 3.75.

The US treasury will release a repot on international capital flows at 9:00am.

Industrial production will be released at 9:15am. Consensus is calling for a month over month decrease of -20bps in April.

At 10:00am, the National Association of Home Builders will release their housing market report for May. Consensus is calling for the index to come in at 44.

  

                  

Trade

Stocks are rallying and the Yen is declining; however I am nervous about how long this could last. I need strong fundamentals to support this trend. I will continue to look for potential risk that could derail this rally in US equities and temporally reverse the decline in the Yen.