Futures Lower on Weak European Manufacturing Data
U.S. equity futures fell in pre-market trading following weak
Eurozone Manufacturing PMIs. The Eurozone Manufacturing PMI for
February fell to 47.8 from 47.9 in January, worse than forecasts of
a reading of 48.5, with weakness in France and Germany weighing on
the broad eurozone measure.
In other news around the markets:
China's Leading Economic Index rose nearly one percent in January
to 253.4, faster than the 0.4 percent gain seen in December, a
large jump and a bullish sign for the Chinese and global economies.
Several members of the FOMC warned in the recent minutes that the
committee should be prepared to taper purchases even before
economic targets have been met. Spain and France issued more than
12 billion euros in bonds with Spanish yields falling from the
previous auction while French yields ticked higher. S&P 500
futures fell 4.2 points to 1,502.90. The EUR/USD was fell to
1.3172. Spanish 10-year government bond yields fell to 5.18
percent. Italian 10-year government bond yields rose to 4.46
percent. Gold fell 0.65 percent to 1,567.70 per ounce.
Asian shares were sharply lower overnight on fears over
liquidity and the housing bubble in China. The Japanese Nikkei
Index fell 1.39 percent and the Shanghai Composite Index fell a
whopping 2.97 percent and the Hang Seng Index fell 1.72 percent.
Also, the Korean Kospi fell 0.47 percent and Australian shares fell
hard with Chinese ones by 2.33 percent.
European shares were lower in early trade following the weaker
than expected PMI data for February. The Spanish Ibex Index fell
1.24 percent and the Italian FTSE MIB Index fell 2.42 percent ahead
of the Italian parliamentary elections this weekend. Meanwhile, the
German DAX fell 1.48 percent and the French CAC fell 1.44 percent
while U.K. shares fell 1.48 percent.
Commodities were also sharply overnight, reflecting the broad
risk-off environment of global markets. WTI Crude futures fell 1.23
percent to $94.46 per barrel and Brent Crude futures fell 0.87
percent to $114.62 per barrel. Copper futures fell 1.41 percent to
$357.45 per pound. Gold was lower and silver futures fell 0.5
percent to $28.48 per ounce.
Currency markets were in flux overnight as the euro weakened and
the yen rose. The EUR/USD was lower by 0.84 percent at 1.3172 and
the dollar fell against the yen to 93.16. Overall, the Dollar Index
rose 0.48 percent on strength against the euro, the pound, the
Swiss franc and the Canadian dollar.
Stocks moving in the pre-market included:
Tesla Motors (NASDAQ:
) shares fell 6.07 percent pre-market as the company reported a
wider than expected quarterly loss. VeriFone Systems (NYSE:
) shares declined a whopping 33.74 percent after the company missed
earnings estimates and slashed guidance. Michael Kors (NYSE:
) shares rose 0.57 percent pre-market after the company priced its
secondary offering at $61.50 per share. TRW Automotive Holdings
) shares fell 1.48 percent pre-market after the company commenced
the book building for its secondary offering.
Notable companies expected to report earnings Thursday
) is expected to report a fourth quarter loss of $0.09 per share
vs. EPS of $0.82 a year ago. Hewlett-Packard (NYSE:
) is expected to report fourth quarter EPS of $0.71 vs. $0.92 a
year ago. Nordstrom (NYSE:
) is expected to report fourth quarter EPS of $1.34 vs. $1.11 a
year ago. Wal-Mart (NYSE:
) is expected to report fourth quarter EPS of $1.57 vs. $1.44 a
year ago. WedMD Health Corp. (NASDAQ:
) is expected to report a fourth quarter loss of $0.04 per share
vs. EPS of $0.33 a year ago.
On the economics calendar Thursday, CPI inflation, jobless
claims and the Flash Manufacturing PMI are due out. Later, existing
home sales data, the Philly Fed Survey, and leading indicators are
expected. Also, James Bullard, Richard Fisher and John Williams of
the Fed are set to speak and the Treasury will auction 30-year
TIPS. Overnight, the latest revision to German GDP and the German
IFO Business Climate Index could move markets.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Gain access to more investing ideas, tools & education.
Get Started on Marketfy, the first ever curated
& verified Marketplace for everything trading.