Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open higher this morning. Asian stocks climbed, Australia’s dollar strengthened to its highest in a month and commodities rallied after Chinese trade data exceeded estimates. European equity futures increased while the U.S. currency weakened and gold halted a five-day gain.

Chinese exports jumped 10.6 percent in January from a year earlier, eclipsing an estimate for a 0.1 percent gain, while imports accelerated 10 percent and the trade surplus widened. Risk assets gained as Federal Reserve Chairman Janet Yellen said growth is picking up in the world’s largest economy and U.S. lawmakers voted to suspend the country’s debt limit until March 2015. The euro zone reports factory output figures today while European Central Bank President Mario Draghi speaks in Brussels.

Stock to watch: Societe Generale

Societe Generale SA, France’s second-largest bank, reported fourth-quarter profit almost double analysts’ estimates, helped by higher earnings at its French and Russian consumer-banking units.

Net income was 322 million euros ($439 million) compared with a loss of 471 million euros a year earlier, when it wrote down a stake in a derivatives broker and booked charges for its own debt, the Paris-based bank said in an e-mailed statement. The profit was more than the 163 million-euro average of nine analysts surveyed by Bloomberg.

Societe Generale’s earnings show its “robustness” and the bank is “in a position, in 2014 and beyond, to seize growth opportunities,” Chief Executive Officer Frederic Oudea, 50, said in the statement.

WHAT TO WATCH:

• MSCI Index review results scheduled to be announced

• Airbus Gets Order From Amedeo Worth $8.3b

• OZ Minerals Gets Approaches on $2.7 Billion Copper Project

• Danone Buys Shares in China’s Mengniu, Raising Stake to 9.9%

• ONO Board Said to Approve IPO of Spanish Cable Company

• Daimler Considering Additional Factory Outside Europe: CEO

• Etihad Eyes Latin America Partnerships to Extend Global Reach

• Tages Capital, La Francaise to Merge Hedge Fund Units: FT

• Panama Canal Says Negotiations With Sacyr-Led Group Continue

• Lloyds, UKFI Said to Reach Deal on GBP395m Bonuses: Sky

• Bayer Says There’s Evidence Naproxen Has Low CV Thrombotic Risks

• Actelion’s Opsumit May Face Study Comparing Gilead’s Letairis

• Barclays Bank Placing 25.1m Crest Nicholson Shares

• Vivarte Halts Payments to Creditors, Starts Debt Talks: Figaro

• Drillisch FY Ebitda EU70.8m; Est. EU70.3m

EARNINGS, all full year:

• Heineken (HEIA NA) 7am

• ING Groep (INGA NA) 7am

• Reckitt Benckiser Group (RB/ LN) 8am. Preview

• Societe Generale (GLE FP) 7am. Preview

• Total (FP FP) 7am. Preview

• Boliden (BOL SS) noon

• Corio (CORA NA) aftermkt

• Edenred (EDEN FP) 7am

• Faurecia (EO FP) 7:30am

• ICA Gruppen (ICA SS) 7:30am

• JM (JM SS) TBD

• Komercni Banka (KOMB CP) 8am

• Modern Times Group (MTGB SS) 1pm

• Norsk Hydro (NHY NO) 7am

• Sampo (SAMAS FH) 8:30am

• Smurfit Kappa (SKG ID) 8am

• Societe BIC (BB FP) 7:15am

• Storebrand (STB NO) 7:30am

• Telecity Group (TCY LN) 8am

• Telenor (TEL NO) 7am

• Tullow Oil (TLW LN) 8am

• Fraport (FRA GY) 7am, Jan. traffic

Good day and happy trading!

Kristian Camenzuli