A Close Look At Monday’s Key Market Events

$IBM, $TRV, $UTX, $VZ, $AXP, $BA, $MMM, $CAT, $MSFT, $MCD, $PG

There will be lots of earnings reports comming to Wall Street this week, these DJIA components among them: IBM, TRV, UTX, VZ, AXP, BA, MMM, CAT, MSFT, MCD, PG

Big Blue reports Monday (NYSE:IBM)

The Key item participants will be paying close attention to Monday morning, will be China’s Q-3 GDP report.

China’s Q-3 GDP Report (Sunday, 18 October, 10:00p. EDT) and it came in higher that economists predicted at 6.9%.

Why it it  important

  1. China got the global market/s into their late-Summer turmoil, so participants are waiting to see if China can convincingly get the global market/s out of that turmoil with some uplifting economic news
  2. GDP data offers a telling picture of where the Chinese economy stands
  3. GDP growth has been in a steady state of deceleration since Q-1 of Y 2010 when it hit 12.1%
  4. Given the growing importance of China’s economy for the global economy, the GDP report has far-reaching trading implications for capital markets
  5. Policy stimulus expectations will be influenced by China’s GDP report

Economists expected a 6.8% growth rate Y-Y for Q-3. That would have been the slowest pace since the Q-1 of 2009.

What’s in play?

  1. China ETFs
  2. iShares China Large-Cap ETF (FXI)
  3. ProShares UltraShort FTSE China 50 (FXP)
  4. db X-trackers harvest CSI 300 China A-Shares Fund (ASHR)
  5. iShares MSCI China ETF (MCHI)
  6. SPDR S&P China ETF (GXC)
  7. China Small Cap ETF (HAO)
  8. Market Vectors China ETF (PEK)

Regional ETFs

  1. iShares MSCI Emerging Markets (EEM)
  2. SPDR S&P Emerging Asia Pacific ETF (GMF)
  3. iShares MSCI Japan (EWJ)
  4. iShares MSCI South Korea Capped ETF (EWY)
  5. iShares MSCI Singapore (EWS)
  6. iShares MSCI Australia ETF (EWA)
  7. iShares MSCI Taiwan ETF (EWT)

Currencies

  1. USD/CNY
  2. USD/JPY
  3. EUR/USD

Have a terrific week.

HeffX-LTN

Paul Ebeling

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