Morning Call by Greg Secker

Yesterday, the FTSE 100 rose by 38.7 points (0.8%) to 4,755.46 to a 10-month closing high. All miners showed increases. Among the largest movers were Antofagasta, Eurasian, Natural Resources, Kazakhyms and Xstrata, which gained between 4.6 and 6 %.Yesterday, the Dow Jones industrial average rose 36.58 points (0.39%) to 9,3978.19.
Yesterday, the S&P 500 index rose 6.92 points (or 0.69%) to close at 1,012.73.Yesterday, the Nasdaq Composite Index added 10.63 points (or 0.53%) to close at 2,009.35. Meanwhile, equity futures indicate: Dow futures are higher by 85 points to 9,404, while S&P futures are up 9.5 points at 1,012.US stocks rose as better-than expected shares in Walmart helped off-set disappointing government numbers in on retail sales and jobs. However results from the rest of the retail sector were varied. Asian Stocks also rose , driving the MSCI Asia Pacific Index to the highest level since September, this was based on speculation that improving corporate earnings will extend a 5-month rally in equities.

Sales at US retailers unexpectedly fell in July and the number of workers filing new claims for jobless benefits rose last week. Commerce Department yesterday showed that total retail sales edged down -0.1% compare to market forecasts expecting a 0.7% rise. Analyst expected the ‘cash for clunkers’ program would have improved retail sales. The Labor department also showed first time applications for unemployment benefits rose by 4,000 to 558,000 last week. Yesterday, surprisingly France and Germany made a return to growth. Figures from the Eurostat showed that both economies grew by 0.3% in the three months to June on the previous quarter, the increased output was boosted by consumer spending – in particular the success of car scrappage schemes. European stock markets closed higher yesterday, helped by this growth data.

Asda attracted more than 18m customers a week for the first time in its 44-year history, but falling food inflation pegged back its recent powerful sales growth. The Wal-Mart-owned grocer posted underlying sales, excluding fuel, up by 7.2% in the three months to 30 June, down from 8.4% in the previous quarter, the Independent reports. RWE which is Europe’s fifth largest utility, yesterday met forecasts with a 3.8% rise in first half operating profit, as lucrative power sales made up for weak performance at it’s subsidiary NPower.

EUR/USD having opened a little lower today, currently down at around 1.4267. For today, technical resistances are up at 1.4300/05. Cable has opened slightly lower, currently lower at around the 1.6557 mark. JPY/USD is currently down at 95.31, while EUR/JPY is down at 135.93 having opened at 136.16.

Due for release today there are a variety of releases, Euro-Zone Consumer Price Index, USD Consumer Price Index , USD Consumer Price Index ex Food and USD industrial production.