US stocks soared on Thursday as companies posted positive earnings data. Pharma giant Pfizer announced to buy Hospira in a deal worth $15 billion. As a result, their shares surged 3% and 35%, respectively. Earnings reports of social network companies were better-than-expected: LinkedIn was up 6.5% and Twitter added 7.6%. At the same time macroeconomic data was negative. The Trade Deficit in December rose 17.1%, the highest level since July 2009. It didn’t affect share prices, but caused the US dollar index fall. Our analysts deem that it may continue to move in the opposite direction with stock indices. This idea can be used for creation of a personal composite instrument. The trading volume on Thursday was 14% above the 5-day average and reached 7 billion shares. US labour market data for January will be released at 13:30 СЕТ. Non-farm Payrolls are expected to make up 230 thousand. The figures below 200 thousand or above 300 thousand may be the reason for investors’ concerns.
European stock indices were up yesterday in tandem with the euro, helped by good news from Greece. The country’s government suggested a bailout program. Investors believe that it may help Greece avoid the default. The program will run until the end of May. The rise was bolstered by upbeat German Industrial Orders in December. European indices are currently traded lower. Despite the positive German data released yesterday, today German industrial production in December was worse-than-expected. We also believe that some market participants are taking profits before the US statistics is being published.
Nikkei is moving along with other global stock indices. Yesterday it closed higher, and today it has slid a little. The same as European indices it has been climbing up for four weeks, but at much weaker pace. A stable yen exchange rate hinders Nikkei moving higher. This morning two economic indicators have been published in Japan: their performance coincided with outlooks and didn’t affect the market. Important data will be reported in Japan on Monday morning: the current account and Trade balance in December, Bank lending and Eco Watchers Survey.
Cocoa prices showed robust growth. Such a rise is officially explained by the weather worsening in Ghana because of the northeast winds, called Harmattan. There is a possibility that cocoa prices would rise further if International Cocoa Organization cuts its forecast of global crop and stockpile.