News Headline Summary


US equities trade lower at the mid-point of today’s session receding from the highest close since December 2007 on Friday. Investors are cautious ahead of the upcoming US earnings season that begins with Alcoa who report after market tomorrow, earnings are expected to be only slightly better than the Q3’s lacklustre results and analysts' current estimates are down sharply from what they were in October. In terms of sectors Financials are down 0.55%, earlier today a group of home mortgage servicers, including major U.S. banks, agreed to pay a total of USD 8.5bln to end a government-ordered, case-by-case review of foreclosures. Conversely treasuries trade in positive territory moving to the upside amid risk off sentiment after last week moving lower following a less dovish than expected release from the FOMC December minutes.

EUR/USD trades at intraday highs following USD weakness. USD/JPY trades lower driven by touted profit taking and news that Japanese PM Abe has renewed his pressure on the BoJ to play a more assertive role in the economy's recovery, raising the adoption of his proposed 2% inflation target by the central bank yet again.

WTI crude futures trade in minor positive territory after breaking through the 200 DMA of 93.17 but resistance was seen at 93.30, last Thursday’s high. WTI was supported by last week’s macro data that showed manufacturing in United States and China expanded in December.

07 Jan 2013 - 18:31 - Energy Economic Commentary - Source: RANsquawk

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