Equities Update

US stocks traded mixed following a near 3 percent rally the previous day as the markets digested the bigger than expected take-up of the ECB 3-years LTRO and ahead of key economic data today. While weaker-than expected results from Oracle weighed in early trade, the S&P found support at its 50-days moving average level (around the 1230 points level) recovering into the close led by gains in defensive sectors.

S&P sectors were mostly higher, with technology the big underperformer in response to Oracle’s poor earnings. Consumer goods, Utilities and Energy shares outperformed.

In corporate news, Yahoo! gained 5.9 percent after reports mentioned it is considering cutting its 40 percent stake in Chinese Alibaba Group to about 15 percent for USD 17bn. Nike advanced 2.9 percent after the company reported 2Q12 results ahead of expectations on strength in footwear and apparel in North America. Oracle fell 11.6 percent as the company missed Q2 12 results with problems in licenses and hardware in most regions.

Asian stocks retreated from a one-week high as the European Central Bank’s efforts to increase lending underscored the difficulties facing euro-region banks. Sumitomo Mitsui Financial lost 0.8 percent in Tokyo on speculation Europe’s worsening debt problems will hurt bank earnings. Tokio Marine slid 2 percent on concern the casualty insurer may be paying too much to buy Delphi Financial Group. OneSteel jumped 8.1 percent in Sydney after Australia’s second-biggest steelmaker said it’s not considering a debt or share sale.

European indices opened up ahead of a busy macro economic agenda. In Europe, Dutch 3Q GDP kicks off followed by Italian retail sales, UK Q3 GDP, current account and Total Business Investment. Across the pond, we will have the third reading of the 3Q GDP, the Chicago Fed Nat Activity Index, Personal Consumption, Core PCE and the weekly claims at 14.30 CET followed by University of Michigan and Leading Indicators. Away from the data, the Italian Senate holds vote on budget plan, ECB President Draghi and BOE Governor King is holding a press conference after meeting of the European Systemic Risk Board at 17.00.