Futures Flat On Bank of Japan Confirmations, European Summit,
U.S. equity futures were little changed in early pre-market
trade as the latest European summit to target growth continued and
the Japanese upper house of parliament approved the three new Bank
of Japan board member nominations. Markets await to see if European
leaders agree on more pro-growth policies or stick to austerity, as
well as any new details on the bailout of Cyprus.
In other news around the markets:
The Federal Reserve criticized J.P. Morgan Chase (NYSE:
) and Goldman Sachs (NYSE:
) for their capital raising plans in the second part of the Stress
Test review. The Fed did not block the capital distribution plans
but asked the banks to resubmit plans later on. A Senate committee
investigating the London Whale losses at J.P. Morgan Chase
criticized the bank's executives for negligence in the massive
trades that lost the bank billions of dollars this past summer.
Bank of England Governor Mervyn King, in responses to critics
claiming that England is also intentionally weakening its currency,
spoke overnight explicitly stating that the BoE is not talking down
the sterling. The pound is having its best day of 2013. S&P 500
futures fell 1.1 points to 1,554.90. The EUR/USD was higher at
1.3053. Spanish 10-year government bond yields rose to 4.87 percent
from 4.83 percent. Italian 10-year government bond yields rose to
4.65 percent from 4.64 percent. Gold rose 0.04 percent to $1,591.50
Asian shares were mixed overnight as Japanese shares rose on the
Bank of Japan confirmations and Australian shares popped a day
after the blowout employment report. The Japanese Nikkei Index rose
1.45 percent and the Shanghai Composite Index gained 0.36 percent
while the Hang Seng Index fell 0.38 percent. Also, the Korean Kospi
fell 0.78 percent and Australian shares gained 1.75 percent.
European shares were mixed overnight as Spanish shares fell on
higher bond yields. The Spanish Ibex Index fell 0.52 percent and
the Italian FTSE MIB Index rose 0.13 percent as the
Bersani-controlled lower house of parliament reconvenes today.
Meanwhile, the German DAX was flat and the French CAC fell 0.45
percent while U.K. shares fell 0.08 percent.
Commodities were higher overnight on the back of Asian equity
strength on renewed hopes that Japan can emerge from its new
decade. WTI Crude futures rose 0.15 percent to $93.19 per barrel
and Brent Crude futures rose 0.28 percent to $109.26 per barrel.
Copper futures rose 0.16 percent to $354.20 per pound, Gold was
higher, and silver futures rose 0.25 percent to $28.87 per
Currency markets were in flux as the pound was stronger
alongside the euro and the yen flipped between gains and losses.
The EUR/USD was higher at 1.3053 and the dollar was flat against
the yen at 96.11 as the pound gained 0.4 percent against the dollar
to 1.5144. Overall, the Dollar Index fell 0.29 percent on weakness
against the pound, the euro, the Swiss franc, and the Canadian
Stocks moving in the pre-market included:
J.P. Morgan Chase (NYSE:
) shares fell 1.49 percent pre-market after the Senate committee
commented on the London Whale losses. Bank of America (NYSE:
) shares rose 3.3 percent as the Fed approved the bank's capital
plan. Citigroup (NYSE:
) shares rose 1.35 percent pre-market as the company had its new
$1.2 billion in share buybacks and $0.01 per share quarterly
dividend approved by the Fed. Aeropostale (NYSE:
) shares fell 4.89 percent pre-market after the company lowered its
first quarter forecast.
Notable companies expected to report earnings Friday
Brown Shoe Company (NYSE:
) is expected to report fourth quarter EPS of $0.08 vs. $0.10 a
On the economics calendar Friday, the consumer price index is
due out alongside the Empire State Manufacturing Index. Later, TIC
flows, industrial production, and consumer sentiment are due out.
Also, Richard Fisher of the Dallas Fed is set to speak on too big
to fail in Maryland. Also, traders take note that today is
quadruple witching, which could cause some volatility into the
close of markets as options and futures are settled.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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