US equities opened higher and are continuing to trade in minor positive territory as sentiment has been boosted following a positive earnings report by Alcoa. Despite the company’s EPS printing in-line with expectations, the beat on revenues has filtered through with markets hoping this sets the tone for the upcoming earnings season. US equities are echoing their European counterparts after the FTSE 100 closed at its highest level since May 2008.
Data releases have been light today although today’s DoE inventories did show a build in the headline Crude Oil figure after a larger than expected drawdown last week. Gasoline also saw a larger than expected build in inventories with RBOB moving lower in the immediate reaction.
Today’s 10-year note auction from the US was not as well received as the previous auction with the B/C printing lower than the previous. In the immediate reaction to the lacklustre auction T-Notes moved lower with the 2/10s moving 1.66bps higher.
Looking ahead, the calendar remains light for the rest of the session with no speakers scheduled or macro-economic data releases and attention is likely to turn to tomorrow’s rate decisions from the ECB and BoE.
Print 18:25, 09 Jan 2013 - Market Analysis - Source: RANsquawk
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