WHAT HAPPENED OVERNIGHT IN THE US:

·         S&P +0.7%, bounced for a second day off chart support (1816) on decent all-round contribution.

·         Better day for earnings: Coca-Cola +4%, Johnson & Johnson +2%.

·         NASDAQ held 200dma intraday – and confirmed it after hrs.  

·         After-hrs: Intel +1.5% beat ests, noted “signs of improvement in the PC business”, and guided revs higher for current quarter.

·         Yahoo +7% also beat, reporting strong Q4 at Alibaba (net income +120%, revs +66%) – ahead of impending IPO.

WHAT’S UP THIS MORNING IN THE EAST:

·         Asia in the green, paced by techs/internets. Hong Kong +0.7% led by Tencent +2%. Japan +2.3% recovering week’s losses, led by Softbank +8%.

·         China +0.3% cautiously upbeat on data relief. Q1 GDP +7.4% y/y slowed vs Q4 (+7.7%) but beat consensus ests 7.3% & whisper (7%).

·         Australia +0.6% clawing back week’s losses, led by tech +3%. BHP +0.3% indicates London +1% on in-line prod report (iron +1% q/q = 40% EBITDA contributor; copper flat = 20%).  But metals subdued despite China data; copper still sub-$3/lb after yesterday’s pullback, and precious & bulks also little changed. Rio +0.2% indicates flat London open.

SOUTH AFRICAN NEWS:

·         Expect AllShare +0.75%. From SA close yesterday, gold unchanged ($1300), plat unchanged ($1440), ZAR unchanged, S&P +0.9%.

TODAYS KEY DATA POINTS:

·         8am+: Europe earnings (CS, Tesco, ASML)

·         10.30am: UK March Claimants (3.4%), Jobless (-30k), Feb Unemployment (7.1%)

·         12pm+: BAC (27c), US Bancorp (73c)

·         1pm: SA Feb Retail Sales (-0.5% m/m, +3.8% y/y)

·         2.30pm: US March Housing Starts (+7% m/m), Permits (-0.4%)

·         3.15pm: US March Ind Prod (+0.5%)

·         8pm: Fed Beige Book

·         US after-hrs: IBM (254c), Google (639c), American Express (130c)