REUTERS/David Mdzinarishvili
Riot police stand at their position near the site of clashes with anti-government protesters in Kiev, January 27, 2014. Police clashed with protesters in central Kiev on Sunday and the fate of Ukraine's government was uncertain after embattled President Viktor Yanukovich offered important posts to opposition leaders, including the role of prime minister.
Good morning. Here's what you need to know.
- The bout of "risk-off" trading that has gripped global markets over the last three sessions appears to be over, at least for the moment. S&P 500 futures are pointing to a positive open, U.S. Treasury futures are poised to open lower, and gold is giving up some of the gains made in recent days. In Europe, markets are rallying, led by Spain's IBEX 35. In Asia, the Nikkei closed 0.2% lower and the Hong Kong Hang Seng slipped 0.1%, but the Shanghai Composite bounced 0.3%.
- Apple shares are down 7.0% in pre-market trading after the company reported lackluster earnings results for the quarter ended December 31. Earnings per share were $14.50, above the consensus Wall Street estimate of $14.07, and revenue was $57.59 billion, slightly above the $57.48 billion consensus estimate, but the company offered revenue guidance for the current quarter in the range of $42 billion to $44 billion, below the $46.1 billion consensus estimate. Sales of iPhones were also significantly lower than expected at 51 million units (versus the 54.7 million estimate).
- Shares of Ford Motor Company are up more than 2% in pre-market trading following the release of earnings results for the quarter ended December 31. The Detroit auto maker reported earnings per share of $0.31, above the consensus Wall Street estimate of $0.28. Revenues were $35.6 billion, slightly above the $35.5 billion consensus estimate. The company made no adjustments to its 2014 forecast.
- The Reserve Bank of India unexpectedly hiked its benchmark interest rate to 8% from 7.75% following a policy meeting Tuesday, saying it would address inflation risks "resolutely" even as GDP growth slows. RBI governor Raghuram Rajan said growth can only be revived after inflation cools. The move was met with criticism by market economists, the overwhelming majority of which expected the RBI to leave rates unchanged. The Indian rupee strengthened against the U.S. dollar following the decision.
- Ukrainian prime minister Mykola Azarov has offered his resignation to president Viktor Yanukovich "with the aim of creating extra means for finding a social-political compromise, for the sake of a peaceful settlement of the conflict." Kiev has been gripped by street demonstrations for several days protesting the administration's decision to pivot away from the EU and toward Russia. Over the weekend, Yanukovich offered Azarov's job to former economy minister and opposition leader Arseny Yatsenyuk in a bid to quell the uprising.
- According to the advance estimate released by the Office of National Statistics this morning, the U.K. economy expanded 0.7% from the previous quarter in the fourth quarter of 2013, bringing the year-over-year change in GDP to 2.8%. Both numbers were right in line with expectations.
- December durable goods orders data are due out at 8:30 AM ET. The consensus estimate of market economists polled by Bloomberg is that total orders rose 1.8% in December after expanding 3.4% in November. Growth in durable goods orders excluding transportation goods is likewise expected to have slowed to 0.5% in December from 1.2% the month before, while growth in orders of nondefense capital goods excluding aircraft is expected to have slowed to 0.3% from 4.1% and growth in shipments of nondefense capital goods excluding aircraft is expected to have slowed to 0.1% from 2.8%. The expiration of investment tax credits at year-end likely boosted November orders, and may provide upside risk to December forecasts as well.
- Out at 9:00 AM are the latest S&P/Case-Shiller Home Price Index readings. Economists predict the data will reveal a 0.8% rise in prices in November from a month earlier, bringing the year-over-year rate of growth to 13.8%.
- The results of the Conference Board's monthly consumer confidence survey are released at 10:00 AM. Economists predict the report's headline index ticked down to 78.0 this month from 78.1 in December.
- Also out at 10:00 are the results of the Richmond Fed's monthly manufacturing survey. Economists predict the report's headline index was unchanged at 13 in January, indicative of a continued favorable business environment. The survey polls manufacturers from Maryland, Virginia, West Virginia, North Carolina, and South Carolina on regional business conditions. Follow all of the data LIVE on Business Insider »