Futures Slightly Higher Despite Euro Fears
U.S. equity futures were slightly higher in early pre-market
trade despite fears emanating from the eurozone over a new bailout
template laid out by Cyprus. Comments from Eurogroup Finance
Minister Jeroen Dijsselbloem sent markets lower Monday after he
insisted that uninsured deposits will now be part of all bailouts.
However, he later back-tracked on some of the comments, creating
even more uncertainty.
In other news around the markets:
Cyprus central bank President Michael Sarris said he expected the
nation's banks to open on Thursday with capital controls to remain
in place "for weeks." Greek bank Piraeus said it expects to
complete the purchase of Greek branches of Cypriot banks by this
morning, a key part of Cyprus' bank restructuring process. Dallas
Fed President Richard Fisher spoke this morning in Dubai, saying
that he still expects 2-3 percent growth this year and reiterated
the stance of Chairman Bernanke in saying that the real problem in
the U.S. is not monetary policy but fiscal policy. S&P 500
futures rose 3.2 points to 1,549.50. The EUR/USD was higher at
1.2868. Spanish 10-year government bond yields fell to 4.91 percent
from 4.96 percent. Italian 10-year government bond yields fell to
4.53 percent from 4.6 percent. Gold fell 0.45 percent to $1,599.50.
Asian shares were mostly lower overnight following similar moves
from Europe and the Americas Monday. The Japanese Nikkei Index fell
0.6 percent and the Shanghai Composite Index fell 1.25 percent
while the Hang Seng Index rose 0.27 percent. Also, the Korean Kospi
rose 0.3 percent while Australian shares declined 0.8 percent.
European shares were mostly higher overnight, reversing the
strong weakness from Monday. The Spanish Ibex Index was the
exception, declining 0.79 percent and the Italian FTSE MIB Index
rose 0.15 percent. Meanwhile, the German DAX rose 0.18 percent and
the French CAC rose 0.61 percent while U.K. shares were flat.
Commodities were mixed overnight on growth fears emanating from
Europe. WTI Crude futures rose 0.4 percent to $95.19 per barrel and
Brent Crude futures declined 0.11 percent to $108.05 per barrel.
Copper futures rose 0.33 percent to $345.65 per pound despite hedge
funds placing record bearish bets on the metal as inventories
globally swell. Gold was lower and silver futures declined 0.23
percent to $28.75 per ounce.
Currency markets were rather quiet overnight as major pairs
moved in tight ranges. The EUR/USD was higher at 1.2868 and the
dollar rose against the yen to 94.18. Overall, the Dollar Index
declined 0.06 percent on weakness against the pound, the Canadian
dollar, and the Swedish krone.
Stocks moving in the pre-market included:
) shares rose 3.84 percent pre-market as the company filed a patent
for a new, more efficient glass production process which will cut
costs. Bank of America (NYSE:
) shares rose 0.4 percent pre-market as CEO Brian Moynihan will be
forced to hold stock compensation longer than previously. Sonic
) shares rose 4.01 percent pre-market after the company reported
earnings in line with analyst estimates. Calumet Specialty Product
) shares fell 3.76 percent pre-market after the company announced a
secondary offering of 5.2 million shares, or about 10 percent of
Notable companies expected to report earnings Tuesday
Mattress Firm Holding Corp. (NASDAQ:
) is expected to report fourth quarter EPS of $0.32 vs. $0.63 a
year ago. The Children's Place (NASDAQ:
) is expected to report fourth quarter EPS of $1.04 vs. $0.87 a
year ago. SAIC (NYSE:
) is expected to report fourth quarter EPS of $0.52 vs. a loss of
$0.49 per share a year ago.
On the economics calendar Tuesday, durable goods orders and the
Redbook are due out followed by the highly anticipated Case-Shiller
Home Price Index. Also, Housing Starts and New Home Sales data is
expected followed by the Richmond Fed Manufacturing Index and
consumer confidence data. In addition, the Treasury is set to
auction 4-week bills and 2-year notes. Overnight, French and
British GDP data is due out and should move markets.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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