Futures Flat on Global Manufacturing Data
U.S. equity futures were flat in early pre-market trade
following manufacturing PMI's from both China and the eurozone.
China's HSBC Flash Manufacturing PMI rose to 51.7 in March,
reversing February's drop and easing fears of a renewed Chinese
slowdown. However, the Eurozone Manufacturing PMI came in weaker
than expected and showed a further contraction in output in
In other news around the markets:
The FOMC kept its foot on the proverbial pedal Wednesday in voting
to keep policy constant. Although members debated extensively the
costs and benefits of additional easing, the committee agreed that
more accommodation was necessary in the face of fiscal tightening.
Germany's manufacturing sector showed a renewed contraction after
two months of expansion as the manufacturing PMI fell to 48.9 from
50.3 on expectations of a rise to 50.5. New Zealand's fourth
quarter GDP rose much more than expected, climbing 1.5 percent from
the previous quarter on expectations of a 0.9 percent gain. The
data is the latest strong data point from Australia and New
Zealand, showing renewed strength in both economies. S&P 500
futures fell 1.3 points to 1,547.70. The EUR/USD was lower at
1.2905. Spanish 10-year government bond yields fell to 4.95 percent
from 4.98 percent. Italian 10-year government bond yields fell to
4.6 percent from 4.66 percent. Gold rose 0.01 percent to $1,607.70.
Asian shares were mixed overnight led by Japanese shares
following the one-day holiday as shares rose on hopes of increased
easing from the Bank of Japan. The Japanese Nikkei Index rose 1.34
percent and the Shanghai Composite Index gained 0.3 percent while
the Hang Seng Index fell 0.14 percent. Also, the Korean Kospi
declined 0.44 percent and Australian shares fell 0.16 percent.
European shares were weaker on the PMI data overnight as well as
continued uncertainty over Cyprus' bailout; the Mediterranean
nation continues talks with Russian creditors today and no deal has
been reached yet. The Spanish Ibex Index fell 0.4 percent and the
Italian FTSE MIB Index fell 0.26 percent. Meanwhile, the German DAX
declined 0.74 percent and the French CAC lost 0.86 percent while
U.K. shares fell 0.64 percent.
Commodities were mixed overnight as energy futures weakened on
the European manufacturing data and metals gained. WTI Crude
futures fell 0.52 percent to $53.01 per barrel and Brent Crude
futures fell 0.29 percent to $108.37 per barrel. Copper futures
rose 0.16 percent to $345.15 per pound on the stronger Chinese
data. Gold was higher and silver futures gained 0.18 percent to
$28.87 per ounce.
Currency markets were in flux overnight as the pound and the yen
gained while the euro sank. The EUR/USD was lower at 1.2905 and the
dollar fell against the yen to 95.46 while the pound gained 0.51
percent to 1.5177 against the dollar. Overall, the Dollar Index
gained 0.03 percent on strength against the euro, the Swedish
krone, and the Swiss franc. Notably, the EUR/GBP rate fell 0.75
percent to 0.8502 and the EUR/JPY fell 0.8 percent to 123.18.
Stocks moving in the pre-market included:
) shares fell 7.73 percent pre-market as the company reported worse
than expected earnings due to currency fluctuations. Jabil Circuit
) shares fell 4.52 percent pre-market as the company reported
weaker than expected earnings. J.C. Penney (NYSE:
) rose 1.24 percent as bondholders filed a noticed withdrawing
their default notice, meaning that the company does not have to
fight the bondholders in bankruptcy court. Zimmer Holdings (NYSE:
) shares rose 0.28 percent pre-market as the company announced an
11 percent rise in its first quarter dividend.
Notable companies expected to report earnings Thursday
) is expected to report fourth quarter EPS of $0.74 vs. $0.51 a
year ago. Micron Technology (NASDAQ:
) is expected to report a fourth quarter loss of $0.20 per share
vs. a loss of $0.29 per share a year ago. Nike (NYSE:
) is expected to report third quarter EPS of $0.67 vs. $0.60 a year
ago. Ross Stores (NASDAQ:
) is expected to report fourth quarter EPS of $1.07 vs. $0.85 a
year ago. Silver Wheaton (NYSE:
) is expected to report fourth quarter EPS of $0.48 vs. $0.41 a
On the economics calendar Thursday, Irish GDP is due out
followed by retail sales and weekly jobless claims. Later, the FHFA
house price index is expected followed by the U.S. PMI, existing
home sales, and the Philly Fed Manufacturing Index. In addition,
the Treasury is set to auction 10-year TIPS. Overnight, the German
IFO Business Climate Index should move markets following the weak
PMI data today.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information you
need to invest better today.
Click here to start your 14 Day Trial of Benzinga