Enis’s Macro Wrap – Asia Plays Catch-Up

by Enis October 18, 2012 7:13 am • Commentary

I am working on a MSFT earnings preview that will be out later this morning.  In the meantime, here are the highlights from markets overnight:

  • Asia continued to be the region of strength, with all major indices rallying quite strongly, as Shanghai was up 1.25%, and Japan was up 2%.  China’s industrial production, retail sales and fixed-asset investment data exceeded expectations, so fears of Chinese slowing eased.
  • I’m keeping my eye on the Japanese Yen as the currency nears 3 month lows vs. the dollar.  The Japanese officials have been scrambling to weaken their currency, and it might finally be working.  Possible trade there in the future.
  • Europe has traded around the unchanged mark most of the session.  NOK reported earnings, and the stock is up about 6% as losses were not as bad as expected.
  • SPX futures have traded in a tight range, down 0.1% at 7:10 am EDT.  The dollar and Treasuries are up a tad, and commodities down a bit.