Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open higher this morning. This is what's happening today:

• Boeing 787 Probe Urges Deactivation of Suspect Honeywell Beacon

• Lew Urges Europeans to Spur ‘Engine of Growth’ as G-20 Convenes

• SoftBank $8.5b Bid for Universal Said Rejected by Vivendi

• Abu Dhabi Sheikh Sold Stake in Barclays, FT Reports

• Portugal’s Coelho Says Election Uncertainty Harms Market Return

• Coller Said to Be in Talks to Buy Credit Suisse Out of DLJ Funds

• Barclays Says Abu Dhabi Sheikh No Longer Holds Shares in Lender

• Murdoch Says He Used ‘Wrong Adjectives’ for Police Hacking Probe

• Deutsche Bank Fails to Block SFO Document Disclosure: Reuters

• Cucinelli 1H Rev. Up 17%; Sees Double-Digit 2013 Rev. Growth

• Ubisoft Entertainment 1Q Sales Beat Forecast; Confirms FY Target

EARNINGS All times CET, estimates where available

• Schibsted (SCH NO) 7am, 2Q adj. EPS est: NOK2.00

• Electrolux (ELUXB SS) 8am, 2Q adj. EPS est: SEK2.49

• Sandvik (SAND SS) 8am, 2Q adj. EPS est: SEK 1.42

• Investment AB Kinnevik (KINVB SS) 8am, no est.

• Assa Abloy (ASSAB SS) 8am, 2Q adj. EPS est: SEK3.59

• Husqvarna (HUSQB SS) 8am, 22Q adj. EPS est: SEK1.35

• Fortum (FUM1V FH) 8am, 2Q adj. EPS est: EU0.21

• Yara International (YAR NO) 8am, 2Q gaap EPS est: NOK7.66

• Swedish Match (SWMA SS) 8:15am, 2Q adj. EPS est: SEK3.50

• Scania (SCVB SS) 9:30am, 2Q adj. EPS est: SEK2.18

• Kone (KNEBV FH) 11:30am, 2Q gaap EPS est: EU0.71

• Stora Enso (STERV FH) 12pm, 2Q adj. EPS est: EU0.0

Asian stocks fell, paring a fourth weekly advance, as technology shares slid after profit at Google Inc. and Microsoft Corp. trailed estimates. Indonesia’s rupiah

dropped for a record 11th day as rubber and gasoline rallied.

The MSCI Asia Pacific Index of equities declined 0.5 percent to 134.91 at 2:33 p.m. in Tokyo, as a gauge of information technology shares retreated the most among the measure’s 10 industries. Japan’s Topix index lost 1 percent while Standard & Poor’s 500 Index futures fell 0.3 percent after the equity gauge rose 0.5 percent to a record in New York. The rupiah dropped 0.4 percent and gasoline increased 1 percent. Rubber was up 1.5 percent, rallying for a third day.

Lower-than-expected profit from Google and Microsoft yesterday added to concern about technology industry earnings after sales forecasts from Taiwan Semiconductor Manufacturing Co. and Intel Corp. missed analyst estimates. A win for Japanese Prime Minister Shinzo Abe in July 21 upper house elections will bolster his chances of implementing more policies like those that have helped the yen weaken 14 percent versus the greenback in 2013. Finance chiefs from the Group of 20 Nations meet this weekend in Moscow.

“There’s some profit taking ahead of elections,” said Seiichiro Iwamoto, who helps oversee the equivalent of $33 billion at Mizuho Asset Management Co. “Abe winning the upper house is already priced in and there’s a feeling that all the good news is out already. Shares should start rising again once we see good earnings results.”

Good day and happy trading!

kristian Camenzuli