• US stock market, economy and companies update (April 17, 2015)

    Ahead of the US session, Chinese regulators said they would change regulations in order to tamp down margin trading, which has sent European and US equities to their lows of the week. Meanwhile, the March CPI data suggests the long period of dormant US inflation may be coming to an end. As of writing, the DJIA is down 1.45%, the S&P500 is down 1.07% and the Nasdaq is off 1.46%.

    The March CPI inflation data strongly suggests the US inflation cycle has turned, providing support for Fed rate hikes sooner rather than later. The headline m/m CPI reading of +0.2% was lower than expected, however the core y/y CPI reading was a robust +1.8%, beating expectations for +1.7%e. March was the second consecutive month of gains in the core y/y CPI figure. Analysts suggest core inflation will continue to be driven by a tug-of-war between lower import prices and the stronger USD versus higher wage inflation as the labor market continues to tighten. The University of Michigan consumer confidence survey improved in April to the second-highest level in more than eight years.

    The China Securities Regulatory Commission has banned the margin trading arms of brokerages from taking part in so-called "umbrella trusts" to help cut leverage and cool equity markets, raising fears of a big China equity selloff. The regulator also placed limits on margin trading for highly risky small stocks that trade OTC. The regulator also warned the small investors driving the mainland equity rally not borrow money or sell property to buy stocks.

    Industrials Honeywell and General Electric disclosed mixed quarterly reports this morning. GE's revenue fell short of expectations, however the headline numbers reflected the GE Capital spinoff announced last week. The core industrial operation profit +9% y/y, improved profit margins sales +3% (including FX). Honeywell's revenue fell 5% y/y on FX and the Friction Material divestiture, while income saw modest gains. GE is up 0.5% while HON is down 2%. Shares of American Express are down 5% after revenue disappointed and the firm reiterated its guidance for flat to lower earnings.

    ***Looking Ahead***
    - G20 Finance Ministers, Central Bankers meet in Washington
    - (US) World Bank and International Monetary Fund (IMF) hold spring Meeting
    - ECB Officials attend IMF Spring meetings in Washington
    - Potential Rating Agency commentary on European sovereigns Norway, Russia, Slovakia
    - 13:00 (US) Weekly Baker Hughes U.S. Rig Count
    - 13:00 (UR) Ukraine Feb Industrial Production Y/Y: No est v 2.9% prior
    - 15:00 (AR) Argentina Mar National Urban CPI M/M: No est v 0.9% prior; Y/Y: No est v 18.0% prior
    - 15:00 (AR) Argentina Mar Wholesale Price Index M/M: No est v 0.2% prior; Y/Y: No est v 16.8% prior

    ***Economic Data***
    - (BR) Brazil Apr IGP-M Inflation (2nd Preview): 1.2% v 1.1%e
    - (IN) India Mar Trade Balance: -$11.7B v -$6.8B prior; Exports Y/Y: -21.1% v -15.0% prior; Imports Y/Y: -13.4% v -15.7% prior
    - (BR) Brazil Apr IBGE Inflation IPCA-15 M/M: 1.1% v 1.0%e; Y/Y: 8.2% v 8.2%e
    - (PL) Poland Mar Average Gross Wages M/M: 5.8% v 4.3%e; Y/Y: 4.9% v 3.4%e
    - (PL) Poland Mar Employment M/M: 0.1% v 0.1%e; Y/Y: 1.1% v 1.2%e
    - (US) Mar CPI M/M: 0.2% v 0.3%e; Y/Y: -0.1% v 0.0%e
    - (US) Mar CPI Ex Food and Energy M/M: 0.2% v 0.2%e; Y/Y: 1.8% v 1.7%e
    - (US) Mar CPI NSA: 236.119 v 236.129e; CPI Core Index SA: 240.793 v 240.523e
    - (US) Mar Real Avg Weekly Earnings Y/Y: 2.2 v 2.7% prior
    - (CA) Canada Mar CPI M/M: 0.7% v 0.6%e; Y/Y: 1.2% v 1.0%e; Consumer Price Index: 126.3 v 126.2e
    - (CA) Canada Mar CPI Core M/M: 0.4% v 0.3%e; Y/Y: 2.4% v 2.1%e
    - (CA) Canada Mar CPI (Seasonally Adj) M/M: 0.4% v 0.3%e; CPI Core (Seasonally Adj) M/M: 0.4% v 0.1%e
    - (CA) Canada Feb Retail Sales M/M: 1.7% v 0.5%e; Retail Sales Ex Auto M/M: 2.0% v 0.7%e
    - (CA) Canada Feb Int'l Securities Transactions: C$9.3 v C$5.8B prior
    - (US) Apr Preliminary University of Michigan Confidence: 95.9 v 94.0e
    - (US) Mar Leading Index: 0.2% v 0.3%e

    Contributed by Trade The News
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