NEWS / Foreign Exchange

Indices tick green after some early weakness

US equity markets headed lower after the NY open weighed down by select earnings and SSS reports.  RIMM is a drag on the NADAQ as it gives back more than 7% after reporting last night.  Mortgage Insurance names opened lower after MTG??™s earning??™s report, but they have pared losses along with other financials helping the major Indices cross into positive territory.  MW is down 6% after providing Q1 guidance, which has pressured shares of JOSB ??“8.4%.  Other retailers that reported March SSS figures include: TGT +0.8% COST +1.5% ANF +3.2% ANN +0.9% PSUN +7% ROST +1% LTD ??“1.5% SKS ??“2%  As usual, buyout talk is also driving volatility.  MEDI is up 12.5% and confirming it has hired Goldman to assist in the review of strategic alternatives.  Ipsco confirmed it is in buyout talks helping other steel names advance. 

Interestingly German government bond yields are moving higher after the ECB left rates unchanged at 3.75% and removed the word vigilant from the accompanying statement.  Markets seem to be keying on Trichet??™s comment that a 4% rate would still be viewed as accommodative.  With US Treasury futures marginally higher, yield differentials are slightly narrowing helping the EUR/USD briefly break the 1.35 level for the first time since January of 2005.  The Dollar is lower across the board with the Dollar Index off nearly 0.5%.  The Australian Dollar trades at levels not seen since 1990.  Crude futures have been higher by more than 1% throughout the session after the IEA overnight raised the Chinese 2007 demand growth estimate to +6.8% from +6.1%.  June Gold is near session lows down $4 at $677.70 along with May copper which is off close to 2%.