Futures Flat as Draghi Talks Down Euro
U.S. equity futures were flat in pre-market trading as European
Central Bank President Mario Draghi spoke after the bank's interest
rate decision. Although no one comment abruptly signaled that the
ECB was set to weaken the euro, the series of comments made at the
press conference and hints given suggested that the bank is indeed
worried about the strength of the euro.
In other news around the markets:
New Jersey Governor Chris Christie is set to legalize online
gambling in the state, making it only the third state to do so.
Chinese inflation cooled in January as the Consumer Price Index
grew 2.0 percent from the same time last year, slower than the 2.5
percent annual gain seen in December. Also, Producer Prices showed
less of a contraction in the month. Japanese Finance Minister Aso
spoke overnight saying that the recent yen moves may have been too
fast and the yen recouped some of its recent losses against the
dollar. S&P 500 futures were flat at 1,505.30. The EUR/USD was
slightly higher at 1.3406. Spanish 10-year government bond yields
fell to 5.36 percent. Italian 10-year government bond yields fell
to 4.54 percent. Gold fell 0.01 percent to $1,671.20 per ounce.
Asian shares were mixed overnight on the Aso comments, the
Chinese inflation data, and also Chinese trade data which showed
that exports and imports grew faster than expected in January. The
Japanese Nikkei Index fell 1.8 percent and the Shanghai Composite
Index rose 0.57 percent while the Hang Seng Index rose 0.16
percent. Also, the Korean Kospi rose 0.99 percent as the yen
weakened and Australian shares rose 0.72 percent.
European shares were higher in early trade on the positive
sentiment from China and also relaxed concerns about the strong
euro as the single currency fell. The Spanish Ibex Index rose 0.29
percent and the Italian FTSE MIB Index rose 0.39 percent.
Meanwhile, the German DAX rose 0.12 percent and the French CAC rose
0.4 percent while U.K. shares rose 0.33 percent.
Commodities were mixed overnight as energy futures gained and
metals futures lagged. WTI Crude futures rose 0.18 percent to
$96.00 per barrel and Brent Crude futures rose 0.46 percent to
$117.78 per barrel. Copper futures rose 0.25 percent overnight
following the strong Chinese data. Gold was lower and silver
futures rose 0.34 percent to $31.51 per ounce.
Currency markets were in reversal mode Friday as major pairs
reversed moves of the recent days. The EUR/USD was higher at 1.3406
after declining massively Thursday and the dollar fell 1.19 percent
against the yen to 92.52. Overall, the Dollar Index fell 0.21
percent on weakness against the euro, the yen, the pound, and the
Canadian dollar. The Australian dollar was also strong overnight,
gaining against the greenback and the euro but declining against
Stocks moving in the pre-market included:
Caesar's Entertainment (NASDAQ:
) shares fell 0.89 percent pre-market after rising more than 10
percent Thursday following the New Jersey news on online gambling.
) shares rose 8.99 percent pre-market as the company reported
earnings that beat analyst estimates. Coinstar (NASDAQ:
) shares fell 8.69 percent pre-market as the company reported
earnings that missed estimates. Archer Daniels Midland (NYSE:
) shares fell 1.78 percent pre-market after investors became
cautious of the company's European operations following its
Notable companies expected to report earnings Friday
) is expected to report fourth quarter EPS of $0.41 vs. $0.23 a
year ago. CBOE Holdings (NASDAQ:
) is expected to report fourth quarter EPS of $0.42 vs. $0.37 a
year ago. Moody's (NYSE:
) is expected to report fourth quarter EPS of $0.69 vs. $0.43 a
On the economics calendar Friday, U.S. International and
Wholesale Trade data are expected as well as the Canadian
employment report and Canadian housing starts. Also, Naryana
Kocherlakota of the Minnesota Fed is set to speak.
Good luck and good trading. For those in the northeast, stay
safe this weekend.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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