Investors have responded positively to Chinese economic reports released overnight which included Q3 GDP (4.6% vs street 4.5%), retail sales (3.2% vs street 2.5%), and industrial production (5.4% vs street 4.6%). UK retail sales also beat expectations (3.9% vs street 3.2%). US housing starts came in slightly above the street consensus.
Both the US and UK 10-yer treasury note yields have crept up toward 4.10%, suggesting traders are becoming less fearful about economic conditions moving forward. Another positive round of earnings reports also appears to be shoring up bullish sentiment.
Netflix* is up 6.4% premarket after beating the street on earnings ($5.40 vs street $5.12) and guidance. Other companies exceeding expectations today include American Express* ($3.49 vs street $3.29), Procter & Gamble ($1.93 vs street $1.90), and Schlumberger ($0.89 vs street $0.88).
The US Dollar has backed off today, enabling other majors to bounce back. Metals are soaring today. Gold is up 0.7% and trading at a new all-time high above $2,725/oz, while Silver is up 1.9%, Copper is up 1.8% and Platinum is up 1.4%. US Crude Oil, however, has not joined the party, holding steady just above $70.00/bbl.
US index futures are mixed heading toward the weekend with Dow Futures down 0.2% and NASDAQ Futures up 0.5%. Europe is also split between a 0.2% loss for the FTSE and a 0.4% gain for the Dax. China markets finished strong off the data with Hong Kong climbing 3.6% and Shanghai surging 2.9%.
*Shares of Netflix and American Express are held in some portfolios managed by SIA Wealth Management.