Archived IMT (2011.04.11)

Japan aftershock spoils continued risk appetite in Asia; 3 Fed speakers on the docket; US earnings season kicks off with Alcoa.

Another week, another above 7 magnitude aftershock, and another retreat in equities/commodities/risk-on FX. High-flying AUD approached its late Friday US-session high around $1.0580, supported by better than expected China trade data, but has since been turned back below $1.0550. Recall a similar development taking place in the middle of last week - 7.1 magnitude event and a tsunami warning followed by brisk profit-taking. As we saw then, limited impact on infrastructure and no further damage to nuclear power plants saw investors rushing back into Japan equities and other risky assets. Any escalation in JAPAN POLITICAL THEATER could add further pressure on the Yen - over the weekend, ruling DPJ party lost some 70 seats in local assembly elections in evidence of low approval for embattled PM Kan.

ALCOA TAKES CENTER STAGE after the US closing bell with the official start to the US earnings season. The first Dow-30 component to report Q1 results, aluminum giant has had a tendency to disappoint. LAST TIME, AA BEAT EARNINGS BUT missed on the top line, sending stock price down 3% for the week. We are paying particularly close attention to company assessment of aluminum demand in 2011, last forecasted to rise 12%.

THREE FED SPEAKERS on deck; Chicago Fed President EVANS will speak on risk management, while FOMC Vice Chair YELLEN will continue to defend her dovish position in the face of rising commodity inflation. The topic for this more relevant 12:15pm ET address - "Commodity Prices, the Economic Outlook, and Monetary Policy" - could not be any more appropriate. We should note that prior to the post-earthquake retreat, crude oil extended its gains above $113.30 while silver nearly breached $42/oz mark. DUDLEY to also speak. Report of more LIVE FIRE by SYRIAN SECURITY forces targeting protesters overshadows speculation Libya government is willing to discuss a ceasefire with the rebels.

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http://www.ashraflaidi.com/economic-calendar/

By GG - AshrafLaidi.com staff