Impeached!, Markets Show Little Change, BOE/BOJ In Focus

The U.S. Markets Are Flat In Early Trading

The U.S. markets are flat in early trading. The major indices are indicated to open within 0.05% of their break-even levels even after President Donald Trump is impeached. The House of Representatives voted yes on two articles of impeachment in a vote that went along party lines. Now the issue moves on to the Senate for a trial that is not expected to confirm the House decision. The markets, meanwhile, show little reaction to an event that is largely seen as a non-issue. While the Democrats have been pursuing their duty labor market and consumer strength reached new highs.

In stock news, shares of poultry producer Sanderson Farms are up 3.0% after beating consensus and raising their outlook. Shares of Rite Aid are also moving higher in early trading. The company posted a solid beat on the top and bottom lines increased the guidance and saw shares prices surge more than 22%. Con Agra, another consumer powerhouse, saw its shares surge more than 7% after it reported earnings.

On the economic front, jobless claims and the Philly Fed’s MBOS were released in the early hours. Jobless claims fell this week, following last week’s big surge, but less than expected. The Philly Fed’s Manufacturing Business Outlook Survey fell -10 points to 0.3 over the last month. The data shows a small expansion in the manufacturing industry and less than expected.

Europe Mixed, Central Banks In Focus

The European markets are mixed at midday after a round of major central bank meetings. In local news, the Bank of England decided to hold rates steady but lowered its outlook for the 4th quarter. The bank’s guiding committee says downside risks include Brexit uncertainty and they stand ready to act if needed. The DAX is down -0.45% in early trading with the CAC not far behind. The FTSE is posting a small gain, near 0.10%.

In stock news, autos are among the biggest losers on Thursday with an average decline of -0.70%. Energy is in the lead with a gain of 0.70%. Shares of Airbus are also moving higher. The company says its backlog is rising, possibly due to the 737-Max crisis.

Asia Mixed, BOJ Holds Rates Steady

Asian markets are mixed at the end of the Thursday session. The Hong Kong Hang Seng leads the market with a loss of -0.30%. The Japanese Nikkei is down –0.29% after the BOJ decided to hold rates steady. The bank chief says they see moderate expansion within Japan’s economy. The Australian ASX fell -0.27% despite strength in labor. The monthly labor gains came in at 40K and well above consensus. The Shanghai Composite and Korean Kospi both closed near break-even.