Canadian Solar Inc - The manufacturer of solar power panels reported first-quarter profit of 61 cents a share, topping analysts’ estimates.
Fluor Corp New - The largest publicly traded U.S. engineering company reported first-quarter profit above analyst estimates and said 2008 earnings will be higher than previously forecast.
Nuance Communications Inc - The biggest maker of speech-recognition software reported second-quarter revenue of $203.3M, missing analysts’ estimates.
Toll Brothers, Inc - The homebuilder reported a 30% drop in second-quarter home-building revenue and said it's looking to use its $2.5B of available capital to make acquisitions.
Wal-Mart Stores, Inc - The world's biggest retailer said it earned $3.02B, topping expectations, and profit rose nearly 7%.

EUR/USD $1.5380
USD/JPY Y103.00, Y102.00
EUR/JPY Y159.00, Y164.00
GBP/USD $1.9480, $1.9400.
NZD/USD $0.7660

The dollar rose for the first time in four days against the euro as retail sales excluding autos increased in April more than forecast, raising speculation the Federal Reserve will stop cutting borrowing costs. The U.S. currency appreciated versus the Australian dollar and the Swiss franc as Cleveland Fed President Sandra Pianalto cited the risk of inflation. The yen fell against the Canadian dollar, the South African rand and the Brazilian real as reduced currency volatility encouraged investors to buy higher-yielding assets funded by low-cost loans in Japan.
The pound dropped as much as 0.8%, the lowest since Feb. 21, as London's property market had the most widespread price declines last month in at least 14 years, while inflation in April was the highest since 2002. The Bank of England held its target lending rate at 5 percent on May 8.
The yen dropped on speculation investors resumed carry trades, in which they borrow in countries with low interest rates and buy where returns are higher. Japan's 0.5 percent target lending rate compares with 11.5 percent in South Africa, 11.75 percent in Brazil and 3 percent in Canada.
Retail sales excluding autos in the U.S. rose 0.5 percent last month, following a revised 0.4 percent increase the previous month, the Commerce Department said in Washington. The median forecast of 74 economists surveyed was for a 0.2 percent increase. Total sales fell 0.2 percent, as economists forecast.
Futures on the Chicago Board of Trade show a 94 percent chance the Federal Reserve will hold its target lending rate at 2 percent at its next meeting on June 25, compared with 86 percent odds yesterday. The balance of bets is for a cut of a quarter-percentage point. There's a 22 percent chance of an increase to 2.25 percent in September.
Fed Chairman Ben S. Bernanke told an Atlanta Fed conference in Sea Island, Georgia, that financial markets remain unsettled and the central bank will increase its auctions of cash to banks as needed.

He said that he is not sure how deep that slowdown will be.
He added that there are signs that financial markets are stabilizing.

The stock market is back on the decline, as financials (-1.1%) continue to show weakness. Market breadth is slightly negative, with decliners outpacing advancers by 7-to-6 on the NYSE and by 6-to-5 on the Nasdaq.

Rate cuts already accomplished are enough, along with stimulus checks, to boost the second half.
Says it's unlikely commodity prices to keep rising but that can't be ruled out.
Can't be complacent about inflation, she says, and the core is on the 'high side.'
Fed realizes, she says, that big Wall St firms who aren't banks nevertheless have the potential to cause 'unacceptable' systemic risks.
Pressures on households can be seen in rising delinquencies across the spectrum of consumer debt

FTSE 100 -8.70 -0.14% 6,211.90
CAC 40 +22.46 +0.45% 4,998.67
Xetra Dax +24.24 +0.34% 7,060.19

Economists at Goldman say retail sales were stronger than expected and the GDP impact will likely be positive for Q2. "The faster increase in core retail sales starts to raise some upside risk to our forecast of a consumption decline. For the first quarter the impact of the upward revisions is marginally positive." A benchmark revision between the March and April data had already folded much of the upward revisions in. "So, the new data today, appear worth only .1% to Q1 growth."

U.S. stocks dropped, led by banks, after Federal Reserve Chairman Ben S. Bernanke said financial markets remain ``far from normal,'' home prices tumbled and the outlook for securities firms' profits worsened. Stocks slipped modestly Tuesday morning as investors weighed Hewlett-Packard's nearly $14 billion acquisition of EDS, Wal-Mart's better earnings and tepid forecast and another record for gas prices.
JPMorgan Chase & Co. and Citigroup Inc. led 28 of 30 banks and brokerages in the Standard & Poor's 500 Index lower after Bernanke said financial companies will have to raise more capital. Bank of America Corp. slipped on a forecast for home- equity loan losses that was wider than its prediction last month. Hewlett-Packard Co. tumbled the most since January on its $13.9 billion purchase of Electronic Data Systems Corp.
Financial shares also retreated after Oppenheimer & Co. analyst Meredith Whitney reduced earnings estimates for Wall Street's biggest securities firms. JPMorgan, the third-biggest U.S. bank by assets, slid $1.12 to $46.12. Citigroup lost 32 cents to $23.32.
Bank of America dropped 55 cents to $36.89. The second- biggest U.S. lender expects losses to top 2.5 percent of its $118 billion in loans linked to home values, Liam McGee, president of the company's consumer and small business division, said at a conference in New York sponsored by UBS AG. The bank previously projected a loss rate of between 2 percent and 2.5 percent.
Hewlett-Packard dropped $2.59, or 5.5 percent, to $44.24. The purchase is the company's largest since the $18.9 billion takeover of Compaq Computer Corp. and will more than double its sales from computer services.
Wal-Mart Stores Inc., the world's largest retailer, declined as Chief Executive Officer H. Lee Scott said there are ``uncertainties'' about the rest of the year.

The major indices are trading with slight losses.Six of the ten economic sectors are trending lower, led by weakness in energy (-0.7%) and materials (-0.7%).

EUR/USD rebound off lows near $1.5430 sees the pair extend to $1.5470. Bids $1.5435/25, $1.5370, stops below, offers $1.5490/00.

1.EMU inflation is still a major problem
2.EMU inflation hurts poorest citizens most
3.No comment on recent dollar rally

Ryan Wang of HSBC notes “the better-than-expected ex-auto retail sales at +0.5% vs consensus at 0.2% along with upward revisions to prior months. He calls the retail sales data a good report, but may not be sustainable if consumer confidence remains in the doldrums.”

Stock futures rose Tuesday after stronger-than-expected Retail sales report. But recover may be short-lived as investor await the comments from Federal Reserve Chairman Ben Bernanke.
Before the bell, report showed Retail sales in April dropped 0.2%. Excluding auto sales, they rose 0.5%, well-above expectations.
In major deal news, HP confirmed after the close Monday that it is in talks to buy EDS for up to $13 billion. The move is seen as an attempt by HP to better compete with IBM.
Airbus on Tuesday announced new delays on deliveries of the superjumbo A380 this year and next, saying it needs more time and resources to get the planes ready.
Oil prices retreated in early electronic trading, with a barrel of light sweet crude falling 74 cents to $123.49.

"We may very well have seen the bottom in the dollar,'' said Stephen Jen, the global head of currency research at Morgan Stanley in London, who forecasts the dollar will rise to $1.40 per euro by year-end. ``The dollar has regained some traction lately. Against the euro, the U.S. dollar is around 25 percent undervalued.''

Dollar rose sharply in the wake of strong US data. EUR/USD refreshed lows around $1.5433. GBP/USD back to session lows on $1.9460, while USD/JPY rose up to Y104.50/60.

The following data were issued
08:30 UK HICP (April) 0.8% - 0.4%
08:30 UK HICP (April) Y/Y 3.0% 2.6% 2.5%
08:30 UK HICP ex EFAT (April) Y/Y 1.4% 1.3% 1.2%
08:30 UK Retail prices (April) 0.9% - 0.3%
08:30 UK Retail prices (April) Y/Y 4.2% 3.8% 3.8%
08:30 UK RPI-X (April) Y/Y 4.0% 3.6% 3.5%

The dollar rose for the first time in four days against the euro on speculation Federal Reserve policy makers will signal inflation may prevent further reductions in interest rates.
The U.S. currency advanced the most against the U.K. pound after an industry report showed London's property market had the most widespread price declines in at least 14 years last month.

EUR/USD opened in early Europe around $1.5553 before falling to $1.5450, currently holding back around $1.5475. Bids $1.5435/25, $1.5370, stops below, offers $1.5490/00.
GBP/USD opened early Europe at $1.9547. Above expected CPI shot cable to $1.9594. Cable was easing off highs as strong euro-yen sales hit the markets, cable's accelerated drop to $1.9453. Cable bids $1.9450, $1.9410/00. Offers $1.9500/10, $1.9540/50.
USD/JPY opened in early Europe around Y103.75 before sliding to Y103.30. Dlr-yen bids Y103.20/00, Y102.60/50, stops below, offers Y104.00/10.

News out of the US could provide further direction for the dollar in the near term. In particular, markets will be particularly interested in what Ben Bernanke, the Fed chairman, says in a speech today.

EUR/USD $1.5200
USD/JPY Y104.00/10
GBP/USD $1.9450
AUD/USD $0.9470, $0.9515
NZD/USD $0.7660
USD/CAD C$1.0000

``It is more likely than not that reasons for speculators returning to selling the dollar will be greater than reasons for them to sell the euro,'' said Derek Halpenny, head of global- currency research in London at Bank of Tokyo-Mitsubishi UFJ Ltd., who expects the euro to reach a record high within three months. ``I see risk that the ECB doesn't do anything this year and expect the Fed will ease again in 2008.''

1.Should ignore short-term inflation volatility
2.Sees inflation pressures developing further in 2009-10
3.Some economies' dollar pag may be unstable and dangerous
4.Oil/food/other commodity prices are now increasing fast
5.No comment on current fx levels or intervention

The pound has been hit hard, particularly against the dollar, this morning after another batch of disappointing UK economic data overnight ratcheted up the pressure on the Bank of England to cut interest rates again in June.
The British Retail Consortium revealed that retail sales fell in April, the first time since 2005 that sales have declined for two straight months. Now investors price in a growing likelihood of a BoE rate cut in June.
Today’s release of strong April CPI inflation data gave only short-lived support to the pound. Tomorrow's Inflation Report from the BoE will be key.
Elsewhre, news out of the US could provide further direction for the dollar in the near term. In particular, markets will be particularly interested in what Ben Bernanke, the Fed chairman, says in a speech today.
“Anything pointing to a US economic recovery and an end to the run of rate cuts we've seen from the Fed should lend some notable support to the dollar,” said CMC Markets' analysts.

The FTSE 100 was hit by the high UK inflation data limiting the scope for future rate cuts. The FTSE 100 now stands down 1.08%, underperforming both the Cac (-0.3%) and Dax (-0.35%)

Resistance 3: Y105.50
Resistance 2: Y104.50
Resistance 1: Y104.00
Current price: Y103.71
Support 1: Y103.20
Support 2: Y102.60
Support 3: Y102.20
Comments: Dollar rebounds. The nearest resistance is Y104.00 and Y104.50. Above there is a room for a rise up to Y105.50, then – to Y106.30. Support is near Friday’s low on Y102.60, then – at Y102.20 with a break under will widen losses to Apr 10 lows around Y100.00.

Resistance 3: Chf1.0730
Resistance 2: Chf1.0670
Resistance 1: Chf1.0510
Current price: Chf1.0487
Support 1: Chf1.0400
Support 2: Chf1.0320
Support 3: Chf1.0280
Comments: Dollar rises. Resistance is around Chf1.0510, then – near Thursday’s high on Chf1.0620. Above there is a room for a rise up to Chf1.0670. Support comes near Friday’s low on Chf1.0390/Chf1.0400, then – on Chf1.0320 and Chf1.0280.

Resistance 3: $1.9780
Resistance 2: $1.9600
Resistance 1: $1.9500
Current price: $1.9464
Support 1: $1.9450
Support 2: $1.9360
Support 3: $1.9280
Comments: Cable still under pressure. Support comes near session lows on $1.9450. Below losses may widen to Feb lows at $1.9360. Resistance comes at hourly high on $1.9500. Above there is a room for a rise up to $1.9600 and $1.9780.

Resistance 3:$1.5640
Resistance 2: $1.5590
Resistance 1: $1.5570
Current price: $1.5463
Support 1: $1.5450
Support 2: $1.5365
Support 3: $1.5280
Comments: Euro weakens, holding a bit higher strong support at $1.5450 (session lows). Further sales may widen till Friday’s low on $1.5280. Session high on $1.5570 is quite a strong resistance. Above the rate may rise to May 6 high at $1.5590 and to the key level $1.5640 (50% of the resent fall from $1.6017 to $1.5280).

AUS/USD coming under pressure as Aussie-yen heads lower. Rate printed lows below $0.9450, holding currently near $0.9434. Traders note there is expiry interest at $0.9470 and $0.9515 today.

EUR/USD $1.5200
USD/JPY Y104.00/10
GBP/USD $1.9450
AUD/USD $0.9470, $0.9515
NZD/USD $0.7660
USD/CAD C$1.0000

- March OECD stocks down 1.3 mln barrels, giving a 18.7 mln drop in 1Q
- IEA cuts 2008 global demand forecast 400 kb/d to 86.8 mb/d
- Non-OPEC supply forecast trimmed 100 kb/d to 50.4 mb/d

Cable pushed up from around $1.9520 to $1.9585 on the intial react, easing back to current level around $1.9535. Offers seen placed between $1.9600/10, more toward Monday's highs at $1.9635.

--Apr RPIX +0.9% m/m; +4% y/y; median +3.8% y/y
--Apr RPI +0.9% m/m; +4.2% y/y; median +0.6% m/m; +3.9% y/y

The dollar traded near a one-week low against the euro before a U.S. government report today that will probably show retail sales declined, adding to evidence the economy is slowing.
Signs of a weakening economy may prompt investors to raise their bets that the Federal Reserve will lower interest rates further. The Fed has slashed borrowing costs seven times since Sept. 18 to avert a recession, pushing the dollar down more than 10 percent versus the euro and yen.
The British pound fell after an industry report showed London's property market had the most widespread price declines in at least 14 years last month.

EUR/USD printed high at $1.5565 before rate fell to bids zone $1.5502.

GBP/USD declined from $1.9575 to key suport at $1.9490 (76.4% $1.9445/1.9635). Bids noted from this level, extending toward $1.9440.

USD/JPY consolidated within Y104.00 -Y103.50.

European data for Tuesday starts at 0645GMT with the France March current account balance. At 1010GMT, ECB Governing Council member Christian Noyer and the Fed's Sandra Pianalto are due to appear at the Global Interdependence Center meeting, through May 14, in Paris. Also today, though the time is uncertain, ECB Governing Council member Mario Draghi is due to speak at a conference, in Rome.

``The recent shift to a neutral FOMC stance and from a very hawkish European Central Bank stance, together with U.S. data pointing to a stagnation rather than a deep contraction, have already contributed to the dollar's rally,'' said Marc Chandler, global head of currency strategy in New York at Brown Brothers Harriman Inc. Chandler said he expects the dollar to reach $1.44 per euro by year-end.

The FTSE was ahead by 40 points, or 0.60%, with the CAC ahead by 0.71%. The DAX was also higher, showing early gains of 0.63%.

The pare challenge on key suport at $1.9490 (76.4% $1.9445/1.9635). A break below $1.9490 to expose stops, which if triggered seen opening a deeper move toward $1.9460, with bids noted from this level, extending toward $1.9440.

The benchmark Nikkei 225 was ahead by 210.37 points, or 1.53%, at 13953.73. The broader-based TOPIX was ahead by 17.26 points at 1360.05.

Resistance 3: Y105.50
Resistance 2: Y104.50
Resistance 1: Y104.00
Current price: Y103.70
Support 1: Y103.20

Support 2: Y102.60

Support 3: Y102.20

Comments: Dollar rebounds. The nearest resistance is Y104.00 and Y104.50. Above there is a room for a rise up to Y105.50, then – to Y106.30. Support is near Friday’s low on Y102.60, then – at Y102.20 with a break under will widen losses to Apr 10 lows around Y100.00.

The June S&P contract was last 0.2 points higher at 1404.9, with the Nasdaq June contract higher by 1.25 points at 1999.75.

Resistance 3: Chf1.0730
Resistance 2: Chf1.0670
Resistance 1: Chf1.0520

Current price: Chf1.0427

Support 1: Chf1.0400

Support 2: Chf1.0320

Support 3: Chf1.0280

Comments: Resistance is around Chf1.0520, then – near Thursday’s high on Chf1.0620. Above there is a room for a rise up to Chf1.0670. Support comes near Friday’s low on Chf1.0390/Chf1.0400, then – on Chf1.0320 and Chf1.0280.

Resistance 3: $1.9780
Resistance 2: $1.9600
Resistance 1: $1.9530
Current price: $1.9517
Support 1: $1.9450

Support 2: $1.9360
Support 3: $1.9280

Comments: Cable still under pressure. Support comes near Friday’s lows on $1.9460. Below losses may widen to Feb lows at $1.9360. Resistance comes at $1.9530 (Friday’s highs). Above there is a room for a rise up to $1.9600 and $1.9780.

FTSE up 23, the DAX up 26, the CAC up 20 and the Eurostoxx 50 up 15.

Resistance 3:$1.5640
Resistance 2: $1.5590

Resistance 1: $1.5570

Current price: $1.5556

Support 1: $1.5490
Support 2: $1.5365
Support 3: $1.5280

Comments: Euro retaines positive mood. Session high on $1.5570 is quite a strong resistance. Above the rate may rise to May 6 high at $1.5590 and to the key level $1.5640 (50% of the resent fall from $1.6017 to $1.5280). Closest support spoted at last Friday highs $1.5490/85 and at $1.5365/60 (March 12 low). Further sales may widen till Friday’s low on $1.5280

China's benchmark stock indices ended lower, weighed by the PBOC's reserve requirement hike and concern over the fall-out from the Sichuan earthquake. The benchmark Shanghai Comp ended the morning down 93.43 points or 2.58 pct at 3,533.55. The Shanghai A-share Index fell 98.10 points to 3,707.65, while the Shenzhen A-share Index was down 15.20 points at 1,153.09. The FTSE/Xinhua China A 50 Index was down 326.12 points at 13,825.31 and the FTSE/Xinhua China A 200 Index fell 220.04 points to 10,611.08.

High Low Close
EUR/USD 1.5564 1.5367 1.5539
USD/JPY 104.01 102.57 103.83
GBP/USD 1.9630 1.9444 1.9568
USD/CHF 1.0509 1.0406 1.0443

EUR/JPY 161.50 158.63 161.36
EUR/GBP 0.7950 0.7874 0.7938
GBP/JPY 203.72 200.19 203.21
GBP/CHF 2.0563 2.0312 2.0435

Change% ChangeLast

08:30 UK HICP (April) - 0.4%
08:30 UK HICP (April) Y/Y 2.6% 2.5%
08:30 UK Retail prices (April) - 0.3%
08:30 UK Retail prices (April) Y/Y 3.8% 3.8%
08:30 UK RPI-X (April) Y/Y - 3.5%
12:30 USA Retail sales (April) 0.0% 0.2%
12:30 USA Retail sales excluding auto (April) 0.3% 0.1%
12:30 USA Import prices (April) - 2.8%
12:30 USA Export prices (April) - 1.5%
12:55 USA Redbook (10.05)
14:00 USA Business inventories (March) 0.4% 0.6%
23:50 Japan Corporate goods price index (CGPI) (April) domestic - 0.5%
23:50 Japan Corporate goods price index (CGPI) (April) domestic Y/Y - 3.9%
23:50 Japan Current account (March) unadjusted, trln - 2.470
23:50 Japan Trade balance (March) unadjusted, trln - 1.040