Futures Rise Ahead of Non-Farm Payrolls, Manufacturing Data
U.S. equity futures rose strongly in the pre-market ahead of the
much awaited Non-Farm Payrolls report. Also, positive macroeconomic
signs were seen in the form of stronger than expected manufacturing
PMI's in China and the Eurozone overnight.
In other news around the markets:
China's official manufacturing PMI fell in January, however the
fall was due to a change in the methodology of the index, while the
HSBC China Manufacturing PMI rose to 52.3 from 51.9, beating
expectations of a reading of 52.1. The Eurozone Manufacturing PMI
in January rose to to 47.9 from 47.5, beating forecasts of a flat
reading month over month, with broad based strength seen across the
continent, a very positive signal. Spanish bank stocks declined
sharply overnight as the Spanish markets regulator lifted the ban
on short-selling in the country. In fact, every stock in the Ibex
35 Index was down on the session. S&P 500 futures rose 6.00
points to 1,499.20. The EUR/USD was rose sharply to 1.3673. Spanish
10-year government bond yields fell to 5.23 percent. Italian
10-year government bond yields fell to 4.32 percent. Gold rose 0.2
percent to $1,665.50 per ounce.
Asian shares were mixed overnight with strength seen in China,
Japan, and Australia following the Chinese manufacturing data. The
Japanese Nikkei Index rose 0.47 percent and the Shanghai Composite
Index rose 1.41 percent while the Hang Seng Index declined 0.03
percent. Also, the Korean Kospi declined 0.21 percent while the
Australian S&P ASX Index rose 0.87 percent.
European shares were mostly higher save for Spain following the
positive manufacturing data. The Spanish Ibex Index declined 1.08
percent following the lifting of the short-selling ban and the
Italian MIB Index rose 0.19 percent. Meanwhile, the German DAX rose
0.69 percent and the French CAC rose 0.97 percent while U.K. shares
rose 0.68 percent.
Commodities were mixed overnight with moves contained to small
fluctuations. WTI Crude futures declined 0.24 percent to $97.26 per
barrel and Brent Crude futures rose 0.19 percent to $115.77 per
barrel. Copper futures rose 0.07 percent to $373.45 per pound on
the stronger than expected Chinese data. Gold was higher and silver
futures rose 0.06 percent to $31.37 per ounce.
Currency markets were showing strong risk-on tones overnight as
the euro gained massively against all major partners. The EUR/USD
was 0.66 percent higher at 1.3673 and the dollar rose against the
yen to 92.14. Overall, the Dollar Index fell 0.3 percent on
weakness against the euro, the Swiss franc, and the Swedish krone.
The euro was strong against the greenback but was more so against
the yen, rising 1.12 percent to 125.93, and rising 0.93 percent
against the British pound to 0.8642. Also, the EUR/AUD rose 1.19
percent to 1.3178.
Stocks moving in the pre-market included:
Bebe Stores (NASDAQ:
) shares fell 4.07 pre-market after the company reported earnings
that missed estimates. Blackstone (NYSE:
) shares rose 0.38 percent pre-market as the company reported
earnings that beat estimates. Facebook (NASDAQ:
) shares rose 1.09 percent pre-market as the stock was upgraded at
Pivotal Research. Microsoft (NASDAQ:
) shares rose 0.51 percent pre-market as the Surface Pro is set to
launch next week.
Notable companies expected to report earnings Friday
Exxon Mobil (NYSE:
) is expected to report fourth quarter EPS of $2.00 vs. $1.97 a
year ago. Ingersoll-Rand (NYSE:
) is expected to report fourth quarter EPS of $0.70 vs. $0.76 a
year ago. Legg Mason (NYSE:
) is expected to report third quarter EPS of $0.54 vs. $0.20 a year
ago. Newell Rubbermaid (NYSE:
) is expected to report fourth quarter EPS of $0.42. vs. $0.40 a
year ago. Perrigo (NASDAQ:
) is expected to report second quarter EPS of $1.33 vs. $1.20 a
On the economics calendar Friday, it's the first Friday of the
month and thus it's Non-Farm Payrolls day. Non-Farm payrolls are
expected to rise to 160 thousand while private payrolls are
expected to rise to 185,000 and the unemployment rate is expected
to fall to 7.7 percent. Also on the economics calendar are the U.S.
Manufacturing PMI and consumer sentiment, followed by the ISM
Manufacturing Index and construction spending data. In addition,
William Dudley of the New York Fed is set to speak.
Good luck and good trading.
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