Futures Rise Into Payrolls, Central Bank Guidance As Metals
U.S. equity futures rose into the much anticipated Employment
Situation Report. Non-Farm Payrolls are expected to have gained 161
thousand in June, below the pace set in May, but the unemployment
rate is expected to tick down to 7.5 percent.
In other news around the markets:
The Bank of England and the European Central Bank both left rates
on hold Thursday. However, both banks took the unprecedented step
of issuing forward guidance, a play out of the Federal Reserve's
playbook, that is a sign that the Bank's will push for more
transparency and look to use more verbal easing. The Chinese
financial regulator issued a statement overnight, saying that the
Chinese authorities will maintain prudent monetary policy, that
policy will seek to balance growth with financial reforms, and that
the government is set to give banks the ability to write off more
bad loans. Steven A Cohen, of SAC Capital, is now expected to avoid
criminal charges in the insider trading scandal. However, his
reputation has already taken a blow and his fund has seen massive
client withdrawals already. S&P 500 futures jumped 14.6 points
to 1,623.70. The EUR/USD was lower at 1.2874. Spanish 10-year
government bond yields fell 4 basis points to 4.61 percent. Italian
10-year government bond yields fell 5 basis points to 4.35 percent.
Gold fell 1.27 percent to $1,236.00 per ounce.
Asian shares closed higher overnight in the wake of the
extremely dovish statement from both the BoE and the ECB. The
Japanese Nikkei 225 Index gained 2.08 percent and the Topix Index
rose 1.53 percent. In Hong Kong, the Hang Seng Index rose 1.89
percent while in China, the Shanghai Composite Index gained 0.05
percent. Also, the Korean Kospi fell 0.32 percent while Australian
shares rose 0.98 percent.
European shares were mixed after strong gains Thursday on the
back of the shift in policy from new Bank of England Governor Mark
Carney and ECB President Mario Draghi. The Spanish Ibex Index fell
0.61 percent and the Italian FTSE MIB Index lost 0.35 percent.
Meanwhile, the German DAX was flat and the French CAC 40 Index fell
0.2 percent while U.K. shares gained 0.24 percent.
Commodities were mostly lower overnight with precious metals
dropping sharply as the dollar strengthened. WTI Crude futures fell
0.15 percent to $101.90 per barrel and Brent Crude futures gained
0.15 percent to $105.70 per barrel. Copper futures fell 2.41
percent to $309.80 per pound. Gold was lower and silver futures
dropped 3.02 percent to $19.11 per ounce.
Currency markets saw broad dollar strength overnight as the
signs of the end of Fed easing coupled with increased stimulus from
abroad boosted demand for the dollar. The EUR/USD was lower at
1.2874 and the dollar was flat against the yen at 100.40 after
dropping as low as 99.89. Overall, the Dollar Index rose 0.93
percent on strength against the pound, the euro, the Swiss franc,
and the Canadian dollar.
Earnings Reported Yesterday
Key companies that reported earnings Wednesday include:
International Speedway (NASDAQ:
) reported second quarter EPS of $0.51 vs. $0.50 expected on
revenue of $178.4 million vs. $182.3 million expected.
Notable companies expected to report earnings Friday
Tech Data Corp. (NASDAQ:
) is expected to report first quarter EPS of $1.03 vs. $1.24 a year
ago on revenue of $6.43 billion vs. $5.9 billion a year ago.
On the economics calendar Friday, the Employment Situation
Report is due out. Economists surveyed by Bloomberg expect Non-Farm
Payrolls to have gained 161 thousand in June vs. 175 thousand in
May. The unemployment rate is expected to have fallen to 7.5
percent from 7.6 percent. Also, the Canadian employment report and
Ivey PMI are due out and the global semiconductor sales report is
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and
For a recap of Monday's market action, read Benzinga's daily
market wrap .
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