Futures Flat on Weak German GDP
U.S. equity futures traded fractionally lower in early Tuesday
trade following the release of fourth quarter and full year 2012
GDP data for Germany. German GDP contracted 0.5 percent in the
fourth quarter bringing the 2012 total rate of growth of +0.7
percent, weaker than economist forecasts of a 0.8 percent rate of
In other news around the markets:
Reports surfaced late Monday that Treasury Secretary Tim Geithner
believes that the Treasury could run out of money as soon as
mid-February unless the debt ceiling is raised. Fed Chairman Ben
Bernanke, speaking at the University of Michigan Monday, reiterated
his stance that a deal needs to get done. Fitch overnight has
threatened the ratings of France, the U.S., and the U.K. citing the
lack of a long-term fiscal plan in the U.S. and a poor European
economy. Former Italian Prime Minister and PM Candidate Silvio
Berlusconi recently conducted a series of television interviews
which have paid off, as his rating in opinion polls increased some
2.5 percent last month according to La 7. S&P 500 futures were
flat at 1,463.70. The EUR/USD was was flat at 1.3384. Spanish
10-year government bond yields fell to 5.033 percent. Italian
10-year government bond yields fell to 4.169 percent. Gold rose
0.69 percent to $1,680.90.
Asian shares were mixed overnight with Japanese shares gaining
on stimulus hopes and Korean shares plummeting. The Japanese Nikkei
Index rose 0.72 percent and the Shanghai Composite Index rose 0.6
percent while the Hang Seng Index fell 0.14 percent in Hong Kong.
Also, the Korean Kospi declined 1.16 percent and Australian shares
slipped 0.07 percent.
European shares were mostly flat to slightly higher in early
trade with notable weakness seen in Spain. The Spanish Ibex Index
fell 0.36 percent while the Italian MIB Index rose 0.41 percent.
Meanwhile, the German DAX rose 0.06 percent and the French CAC
gained 0.25 percent while U.K. shares rose 0.08 percent.
Commodities were mostly higher overnight, buoyed by energy
strength. WTI Crude futures rose 0.25 percent to $94.38 per barrel
and Brent Crude futures gained 0.4 percent to $112.33 per barrel.
Copper futures declined with Australian mining stocks as futures
lost 0.21 percent to $362.65. Gold was higher and silver futures
rose 0.72 percent to $31.34 per ounce.
Currency markets were fairly quiet overnight with the exception
being yen strength following comments from Japanese Economy
Minister Amari that too much yen weakness too soon is not healthy.
The EUR/USD was flat at 1.3384 and the dollar declined against the
yen to 88.83. Overall, the Dollar Index fell 0.08 percent with
weakness against the yen offset by strength against the Canadian
dollar and Swiss franc. In addition, the AUD/JPY cross was the
biggest mover, declining 0.83 percent, and the EUR/JPY followed the
Stocks moving in the pre-market included:
) shares rose 0.29 percent pre-market as the company announced that
it is launching a new cloud computing unit. Bank of America (NYSE:
) shares declined 0.39 percent ahead of its earnings report later
Notable companies expected to report earnings Tuesday
El Paso Pipeline Partners LP (NYSE:
) is expected to report fourth quarter EPS of $0.55 vs. $0.51 a
year ago. Forest Labs (NYSE:
) is expected to report a third quarter loss of $0.14 per share vs.
a profit of 1.04 per share a year ago. Interactive Brokers (NASDAQ:
) is expected to report fourth quarter EPS of $0.21 vs. $0.27 a
year ago. Lennar Corporation (NYSE:
) is expected to report fourth quarter EPS of $0.44 vs. $0.16 a
On the economics calendar Tuesday, Boston Fed President Eric
Rosengren speaks ahead of the PPI and retail sales data releases.
Also, the Empire State Manufacturing Index is due out as well as
the Redbook and Naryana Kocherlakota of the Minneapolis Fed and
Charles Plosser of the Philly Fed are set to speak. Lastly,
business inventories data is due out and the Treasury is set to
auction 4-week bills. Overnight, Australian auto sales, Chinese FDI
data, and a German 1-year bund auction will set the tone for
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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