Futures Higher Following Asian, Yen Strength
U.S. equity futures rose sharply pre-market following strength
abroad overnight as Asian and European shares rallied alongside the
yen slide. Yen weakness was a key driver of the risk-on environment
as the USD/JPY closed in on the key 100 level once again.
In other news around the markets:
The G20 refrained from openly criticizing Japan's easing moves as
manipulating its currency, a key sign that the G20 and other global
groups support Japan's efforts to reflate its economy. The Wall
Street Journal reported overnight that Japan's four largest life
insurers are to unveil new investment plans this week. Alongside
the government easing program is a private sector investment plan,
which could see new money flow into foreign bonds and equities.
Over the weekend, ECB Board Member Ewald Nowotny spoke saying that
a rate cut is not needed yet and that policy needs to take a wait
and see approach. S&P 500 futures rose 9.1 points to 1,556.70.
The EUR/USD was fell slightly to 1.3047. Spanish 10-year government
bond yields fell 10 basis points to 4.53 percent. Italian 10-year
government bond yields fell 9 basis points to 4.13 percent. Gold
rose 2.02 percent to $1,423.00 per ounce.
Asian shares were mostly stronger overnight following the news
out of Japan over the weekend. The Japanese Nikkei Index rose 1.89
percent overnight while the Shanghai Composite Index slipped 0.11
percent and the Hang Seng Index gained 0.14 percent. Also, the
Korean Kospi rose 1.03 percent and Australian shares rose 0.7
European shares rose in tandem as Italy elected an interim
government to set up a new round of elections. The Spanish Ibex
Index rose 1.19 percent while the Italian FTSE MIB Index rose 2.33
percent on reduced political uncertainty. Meanwhile, the German DAX
rose 0.84 percent and the French CAC rose 0.59 percent and U.K.
shares rose 0.86 percent.
Commodities were mostly higher overnight led by gains in
precious metals. WTI Crude futures rose 0.44 percent to $88.30 per
barrel and Brent Crude futures gained 0.48 percent to $99.89 per
barrel. Copper futures declined 0.82 percent to $314.20 on
continued supply fears, making a new 2013 low once again. Gold was
higher and silver futures rose 1.83 percent to $23.38 per
Currency markets were in flux overnight and in focus as yen
weakness drove broad market gains. The EUR/USD was slightly lower
at 1.3047 and the dollar rose against the yen to 99.78 after
touching as high as 99.90. Overall, the Dollar Index rose 0.08
percent on strength against the euro, the yen and the Swiss
Earnings Reported Friday
Key companies that reported earnings Friday include:
General Electric (NYSE:
) reported first quarter EPS of $0.39 vs. $0.35 expected on revenue
of $35.0 billion vs. $34.7 billion expected. Honeywell (NYSE:
) reported first quarter EPS of $1.21 vs. $1.14 a year ago on
revenue of $9.33 billion vs. $9.44 billion a year ago. McDonald's
) reported first quarter EPS of $1.26 vs. $1.27 expected on revenue
of $6.61 billion vs. $6.59 billion expected. Schlumberger (NYSE:
) reported in-line EPS of $1.01 on revenue of $10.67 billion vs.
$10.75 billion expected. Under Armour (NASDAQ:
) reported first quarter EPS of $0.07 vs. $0.03 expected on revenue
of $472 million vs. $467.57 million expected.
Stocks moving in the pre-market included:
Newmont Mining (NYSE:
) gained 0.85 percent pre-market as precious metals prices
attempted to stage a rebound overnight. General Electric shares
fell 0.69 percent pre-market after CEO Immelt noted European
weakness as a hindrance to performance in the previous quarter.
Notable companies expected to report earnings Monday
Ameriprise Financial (NYSE:
) is expected to report first quarter EPS of $1.56 vs. $1.45 a year
ago. Caterpillar (NYSE:
) is expected to report first quarter EPS of $1.45 vs. $2.37 a year
ago. Investors should watch any comments about Chinese business
following the recent weak first quarter GDP data. Halliburton
) is expected to report first quarter EPS of $0.57 vs. $0.89 a year
ago. Netflix (NASDAQ:
) is expected to report fourth quarter EPS of $0.18 vs. a loss of
$0.08 per share a year ago. U.S. Airways (NYSE:
) is expected to report first quarter EPS of $0.28 vs. a loss of
$0.13 per share a year ago.
On the economics calendar Monday, the Chicago Fed National
Activity Index is due out as well as Existing Home Sales. Also, the
Treasury is set to auction 3- and 6-month bills. Overnight, the
flash China HSBC Manufacturing PMI is due out as well as Flash
Manufacturing and Services PMI's for the eurozone, Germany and
Good luck and good trading.
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