Futures Flat, Awaiting Cyprus Decision
U.S. equity futures were flat in early pre-market trade as
markets awaited a vote in the Cypriot parliament to decide if the
recently discussed bailout passes. The President of Cyprus Monday
cancelled a vote as the bailout legislation did not have enough
political support to pass.
In other news around the markets:
Cyprus is working on a deal to prevent savers with deposits under
20,000 euros from being taxed. Many leaders have discussed the
prospect of protecting all those with less than 100,000 euros in
deposits but it is up to Cyprus to decide to meet the target amount
of funds raised. Chinese FDI rose 6.3 percent in February as
compared to the same period last year, the first monthly increase
in nine months. The increase in FDI further raises fears of a
property bubble. The so-called mastermind of QE in Japan, Masayoshi
Amamiya, was reappointed to the Bank of Japan board, increasing
hopes that the BoJ can successfully reflate its economy. S&P
500 futures were flat at 1,545.60. The EUR/USD was lower at 1.2923.
Spanish 10-year government bond yields rose to 4.98 percent from
4.95 percent. Italian 10-year government bond yields rose to 4.66
percent from 4.63 percent. Gold fell 0.19 percent to $1,601.60 per
Asian shares were mixed overnight as Japanese shares led on
hopes of renewed stimulus from the BoJ. The Japanese Nikkei Index
rose 2.03 percent and the Shanghai Composite Index rose 0.78
percent while the Hang Seng Index fell 0.19 percent. Also, the
Korean Kospi rose 0.53 percent and Australian shares declined 0.56
European shares were lower for the second consecutive day as
leaders struggle to reach an agreement on the Cyprus bailout. The
Spanish Ibex Index fell 0.63 percent and the Italian FTSE MIB Index
declined 0.35 percent. Meanwhile, the German DAX slipped 0.62
percent and the French CAC declined 0.62 percent as well as U.K.
shares fell 0.33 percent.
Commodities were weaker overnight as markets sold off on global
growth fears sparked by the Cyprus bailout negotiations and
continued fears of a new monetary tightening cycle in China. WTI
Crude futures fell fell 0.06 percent to $93.73 per barrel and Brent
Crude futures fell 0.66 percent to $108.84 per barrel. Copper
futures declined 0.67 percent on Chinese tightening fears. Gold was
lower and silver futures declined 0.27 percent to $28.81 per
Currency markets were rather quiet overnight with aslight
risk-off bias as the euro and the yen weakened. The EUR/USD was
lower at 1.2923 and the dollar gained against the yen to 95.42.
Overall, the Dollar Index rose 0.14 percent on strength against the
euro, the yen, and the Swiss franc.
Stocks moving in the pre-market included:
) shares declined 4.54 percent pre-market as some of the company's
employees in China are being investigated for misuse of GPS
devices. Peabody Energy (NYSE:
) shares rose 1.76 percent pre-market on unconfirmed rumors of
Icahn taking a stake in the company. Boeing (NYSE:
) shares rose 0.96 percent pre-market after announcing a new deal
with Ryanair (NASDAQ:
) worth over $15 billion. Arm Holdings (NASDAQ:
) shares declined 2.29 percent pre-market after the CEO announced
his intention to retire in July.
Notable companies expected to report earnings Tuesday
Adobe Systems Inc (NASDAQ:
) is expected to report first quarter EPS of $0.31 vs. $0.57 a year
ago. Rockwell Collins (NYSE:
) is expected to report second quarter EPS of $1.18 vs. $1.09 a
year ago. DSW (NYSE:
) is expected to report fourth quarter EPS of $0.72 vs. $0.51 a
year ago. FactSet Research Systems (NYSE:
) is expected to report second quarter EPS of $1.11 vs. $1.02 a
year ago. Francesca's Holdings (NASDAQ:
) is expected to report fourth quarter EPS of $0.30 vs. $0.20 a
year ago. Williams-Sonoma (NYSE:
) is expected to report fourth quarter EPS of $1.29 vs. $1.17 a
On the economics calendar Tuesday, building permits and housing
starts are expected as well as the Redbook. Also, the Treasury is
set to auction 4-week bills. Overnight, German inflation and
British employment data could move markets.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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