Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open higher this morning.

Bank of America

Bank of America Corp., the second-biggest U.S. lender, quadrupled its quarterly profit and beat Wall Street estimates as the company quelled claims tied to defective mortgages. The stock reached its highest level in more than three years.

WHAT TO WATCH:

• ECB Said to Favor 6% Capital Requirement in Stress Test of Banks

• Rio Tinto Slashes Costs as Iron-Ore, Coal Output Hit Records

• EU’s Rehn Says Debt Levels Stabilizing in Euro Area

• Heathrow Boosts Top Hub Status as Rivals Feel Heat From Istanbul

• Currency Traders Told Bank of England of Fix Practices in 2012

• France Selling EU455m Stake in Airbus to Institutions

• Telecom Italia CEO Is Said to Back Curbing Telco Power on Board

• Allergan Won’t Seek Further Foothold in Ireland, CEO Pyott Says

• EU Lawmakers Butt Heads on Planned Euro-Area Bank-Failure Agency

• Russia Swears Off Stimulus as Central Bank Warns of Stagflation

EARNINGS All times CET:

• Ahold (AH NA) 8am, 4Q sales/trading. Preview

• Carrefour (CA FP) 7:30am, 4Q sales/trading

• Richemont (CFR VX) 7am, 3Q sales/trading. Preview

• Aberdeen Asset (ADN LN) 8am, 1Q sales/trading

• Accor (AC FP) 8am, 4Q sales

• Assoc British Foods (ABF LN) 8am, 1Q sales/trading. Preview

• Beiersdorf (BEI GY) 8am, 4Q sales/trading. Preview

• Booker Group (BOK LN) 8am, 4Q sales/trading

• C&C Group (GCC ID) 8am, 3Q sales/trading

• Dixons Retail (DXNS LN) 8am, 3Q sales/trading. Preview

• Experian (EXPN LN) 8am, 3Q sales/trading

• Home Retail (HOME LN) 8am, 3Q sales/trading. Preview

• Ladbrokes (LAD LN) 8am, 4Q sales/trading

• Ocado Group (OCDO LN) 8am, 4Q sales/trading

• Premier Oil (PMO LN) 8am, 4Q production/trading

Good day and happy trading!

Kristian Camenzuli