U.S. equity futures fell in early Monday trading as Hurricane
Sandy forced the New York Stock Exchange and the NASDAQ Exchange
to close due to weather for the first time in 27 years. The storm
threatens the entire Eastern seaboard and will dump rain from
Maine to Delaware.
In other news around the markets:
- Spanish retail sales fell 10.9 percent in September on an
annualized basis, below last month's reading of a drop of 2.1
percent. The government blames the increase in the VAT for the
- The Bank of Spain is set to announce its bad bank program
at 11:00 am eastern, similar to the type of program Ireland
launched to save its banks. However, in the end, the program
- ECB Governor Ewald Nowotny spoke, stating that the ECB
would not participate in any haircut of Greek debt, an idea
which many think could help relieve the nation's debt
- S&P 500 futures fell 7.6 points.
- The EUR/USD was lower at 1.2907.
- Spanish 10-year government bond yields rose to 5.638
- Italian 10-year government bond yields rose to 4.96
- Gold rose 0.03 percent to $1,712.40.
Asian shares were mostly lower in overnight trading as
investors await the decision of the Bank of Japan on new easing
measures. The Japanese Nikkei Index fell 0.04 percent and the
Chinese Shanghai Composite Index fell 0.35 percent as the Hang
Seng Index dropped 0.16 percent in Hong Kong. Also, the Korean
Kospi closed flat and Australian shares rose 0.1 percent.
European shares were lower in early Monday trading as economic
weakness in Spain and worries over Italy's debt frightened
investors and sent shares lower across the continent. Spain's
Ibex Index fell 0.46 percent and the Italian MIB Index fell 1.53
percent in Milan trading. The German DAX dropped 0.62 percent and
the French CAC followed lower, losing 0.88 percent while U.K.
shares lost 0.5 percent.
Commodities were mixed with a slight downward bias in
overnight trading. WTI Crude futures fell 0.81 percent to $85.58
per barrel and Brent Crude futures fell 0.4 percent to $109.11,
with the spread between them continuing to widen. Copper futures
dropped 0.79 percent to $352.20 per pound. Gold was higher and
silver futures fell 0.27 percent to $31.95 per ounce.
Currency markets had no real direction overnight as volumes
were weak ahead of the landfall of Hurricane Sandy. The EUR/USD
was lower and the dollar fell against the yen in a risk-off
manner. However, the Aussie dollar also gained against many other
currencies, but yen strength was the dominant trend in markets
overnight in clear risk-off fashion. The USD/JPY slipped to 79.61
and the EUR/JPY fell to 102.79, approaching the crisis levels
seen over the summer when the European debt crisis flared up.
There are several notable companies reporting earnings Monday,
- Baidu (NASDAQ:
) is expected to report third quarter EPS of $1.29 vs. $0.84 a
- Flowserve (NYSE:
) is expected to report third quarter EPS of $2.05 vs. $1.92 a
- RealD (NYSE:
) is expected to report a third quarter loss of $0.07 per share
vs. a profit of $0.33 a year ago.
- Red Robin Gourmet Bugers (NASDAQ:
) is expected to report third quarter EPS of $0.16 vs. $0.24 a
On the economic calendar Monday, personal income and outlays
data is due out as well as the Dallas Fed Manufacturing Index.
However, all eyes will be on Friday's employment situation
report, the last such report ahead of the elections. Also, the
Treasury is set to auction 3- and 6-month bills and France is set
to issue bills of the same maturity as well. Overnight Monday
into Tuesday, investors should watch the Bank of Japan's interest
rate decision and press conference, as economists and investors
are looking for an increase in the Bank's easing policies. Also,
Spanish GDP data is due out and ECB President Mario Draghi is set
Good luck and good trading.
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