Tuesday Morning Notes: China Trade Balance Showing Surplus Surprises Analysts

HedgeFundLIVE.com – Morning Notes

– Global markets are up this morning
– In China, Trade Balance surprisingly exceeded expectations as the data showed a $11.4B surplus rather than previous deficit
– Shanghai closed up 60bps while Nikkei closed up 30bps
– Note that Hang Seng was closed for a holiday today
– Positive tone in Japan partially due to reports that Toyota would resume normal production 2-3 months sooner than expected
– European bourses have caught a bid as well, though they saw a bit of volatility stemming from reports of a new Greek bail out, which was later denied by officials
– Greek debt auction completed- markets seem to like the results as they saw a lift afterwards
– Greek debt auction: raised 1.625B EUR in 26-week treasury auction, drawing an avg yield of 4.88% (slightly higher than 4.8% prior) and a 3.58x bid/cover
– Higher rate attests to the country’s ongoing fiscal issues
– Swiss CPI came in much lower than expectations- triggered pullback in swiss franc
– CME raised margins on oil, which sold off the commodity
– Silver and gold have been pulling in off their premarket high; silver managing to stay green while gold has entered into negative territory
– S&P futures are trading up 5.5 handles from FV ahead of the open
– April Import Prices Ex Oil: +0.6%
– April Export Prices Ex Ag: +1.0%
– March Wholesale inventories out at 10a; 3-yr Note auction results at 1p

Greece Bailout Extension