Futures Higher Following Japanese Elections
U.S. equity futures rose in early pre-market trade following a
positive result from the Japanese elections for the upper house of
Parliament over the weekend. The elections now giver Primer
Minister Shinzo Abe a majority in both houses and should pave the
way for more policy changes and economic reforms to be passed.
In other news around the markets:
) reported second quarter results overnight and shares rose after
the bank posted net income of 690 million Swiss francs, besting the
forecast of 586 million francs. The G20 issued their communique
following their weekend meetings and stressed growth over austerity
and targeting fiscal consolidation over the medium-term. Portugal's
President Cavaco said that the country failed to reach an agreement
on a new ruling coalition and the country now looks set to go back
to the polls. Should the current regime lose its majority, it could
disrupt bailout reforms and throw in doubt Portugal's future within
the Eurozone. S&P 500 futures rose 8.9 points to 1,689.50. The
EUR/USD was higher at 1.3162. Spanish 10-year government bond
yields were flat at 4.68 percent. Italian 10-year government bond
yields were flat at 4.41 percent. Gold rose 1.76 percent to
$1,316.80 per ounce.
Asian shares were mostly higher in overnight trade following
positive results from the Japanese elections. The Japanese Nikkei
225 Index rose 0.47 percent and the Hang Seng Index gained 0.25
percent while the Shanghai Composite Index rose 0.61 percent. Also,
the Korean Kospi gained 0.48 percent and Australian shares rose 0.6
European shares were mostly higher overnight following strong
earnings and positive sentiment out of Asia. The Spanish Ibex Index
rose 0.55 percent and the Italian FTSE MIB Index gained 0.71
percent. Meanwhile, the German DAX gained 0.34 percent and the
French CAC 40 Index rose 0.3 percent as U.K. shares rose 0.12
Commodities were mostly higher overnight as precious metals
rallied and gold crossed back above $1,300 per ounce. WTI Crude
futures rose 0.43 percent to $108.51 per barrel and Brent Crude
futures gained 0.28 percent to $108.34 per barrel. Copper futures
rose 0.92 percent to $316.90 per pound. Gold was higher and silver
futures rose 2.24 percent to $19.90 per ounce.
Currency markets were on the move overnight with the yen
strengthening. The EUR/USD was higher at 1.3162 and the dollar fell
0.64 percent against the yen to 100.01. Overall, the Dollar Index
fell 0.26 percent on weakness against the yen, the Swiss franc, and
the Canadian dollar.
Earnings Reported Yesterday
Key companies that reported earnings Friday include:
General Electric (NYSE:
) reported second quarter EPS of $03.36, in line, on revenue of
$35.12 billion vs. $35.58 billion expected. Slumberger (NYSE:
) reported second quarter EPS of $1.15 vs. $1.19 expected on
revenue of $11.18 billion vs. $11.11 billion expected. Honeywell
) reported second quarter EPS of $1.28 vs. $1.21 expected on
revenue of $9.69 billion. ManpowerGroup (NYSE:
) reported second quarter EPS of $1.05 vs. $0.89 expected on
revenue of $5.04 billion vs. $4.99 billion expected.
Stocks moving in the pre-market included:
) shares rose 4.51 percent pre-market as the company reported
better than expected earnings. Credit Suisse (NYSE:
) rose in sympathy with UBS, gaining 2.43 percent pre-market.
Newmont Mining (NYSE:
) shares rose 2.75 percent pre-market as metal prices bounced.
) shares gained 1.5 percent pre-market on higher gold prices.
Notable companies expected to report earnings Monday
) is expected to report second quarter EPS of $0.72 vs. $0.80 a
year ago. McDonald's (NYSE:
) is expected to report second quarter EPS of $1.40 vs. $1.32 a
year ago. Kimberly-Clark (NYSE:
) is expected to report second quarter EPS of $1.39 vs. $1.30 a
year ago. Texas Instruments (NASDAQ:
) is expected to report second quarter EPS of $0.41 vs. $0.44 a
On the economics calendar Monday, the Chicago Fed National
Activity Index is due out followed by existing home sales and the
weekly 3- and 6-month bill auctions.
Good luck and good trading.
Tune into Benzinga's PreMarket Info show with Dennis Dick and
For a recap of Friday's market action, read Benzinga's daily
market wrap .
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