Futures Higher on Strong European Services Data
U.S. equity futures rallied in early pre-market trade following
stronger than expected Non-Manufacturing PMI data from the eurozone
and the U.K. The Eurozone Services PMI rose to 47.9 in February
from 47.3 in January on expectations of a flat reading
month-over-month. Also, the U.K. Non-Manufacutring PMI rose to 51.8
from 51.5 in January, beating expectations of a reading of 51.
In other news around the markets:
The Reserve Bank of Australia kept rates on hold at 3.00 percent.
The accompanying statement was slightly more optimistic on the
global economy despite recent poor Chinese data however the Bank
still said that there is room for more accommodative policy.
European regulators issued a statement overnight indicating that
Spain's bank reform plan is on track so far and that the Bad Bank
plan is working. The China HSBC Services PMI confirmed the official
Non-Manufacturing PMI released over the weekend by falling to 52.1
in February from 54 in January. However, it is yet to be seen if
this slowdown is due to transitory effects emanating from the Lunar
New Year Holiday. S&P 500 futures rose 3.60 points to 1,529.30.
The EUR/USD was higher at 1.3043. Spanish 10-year government bond
yields fell to 5.06 percent. Italian 10-year government bond yields
fell to 4.77 percent. Gold rose 0.53 percent to $1,580.80 per
Asian shares were higher in overnight trade following large
losses Monday. The Japanese Nikkei Index rose 0.27 percent and the
Shanghai Composite Index rose 2.33 percent while the Hang Seng
Index gained 0.1 percent. Also, the Korean Kospi rose 0.17 percent
and Australian shares rallied 1.29 percent following the RBA rate
European shares were higher following the stronger than expected
services PMI data. The Spanish Ibex Index rose 1.19 percent and the
Italian FTSE MIB Index gained 1.86 percent. Meanwhile, the German
DAX rose 1.67 percent and the French CAC gained 1.38 percent and
U.K. shares added 0.73 percent.
Commodities were stronger overnight after oil touched a new 2013
low Monday. WTI Crude futures rose 0.31 percent to $90.41 per
barrel and Brent Crude futures rose 0.57 percent to $110.72 per
barrel. Copper futures rose 0.63 percent to $352.40 following the
RBA decision. Gold was higher and silver futures gained 1.35
percent to $28.88 per ounce.
Currency markets showed broad sterling strength overnight as the
yen strengthened as well. The EUR/USD was higher at 1.3043 and the
dollar fell against the yen to 93.13 while the pound rose to 1.5168
against the dollar. Overall, the Dollar Index fell 0.2 percent on
weakness against the pound, the yen, and the euro.
Stocks moving in the pre-market included:
Marathon Petroleum Cop. (NYSE:
) shares rose 0.12 percent pre-market after the stock climbed 5.62
percent Monday to a new all-time high. The stock has more than
doubled in the last 52-weeks. United States Steel (NYSE:
) shares rose 1.25 percent pre-market on bullish options market
activity. Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) rose 0.93
percent pre-market as Warren Buffett has indicated that he is "on
the hunt for more elephants." J.C. Penney (NYSE:
) shares fell 1.43 percent pre-market on reports that a large
shareholder is set to sell a 10 million share block.
Notable companies expected to report earnings Tuesday
Checkpoint Systems (NYSE:
) is expected to report fourth quarter EPS of $0.17 vs. a loss of
$0.10 per share a year ago. Qihoo 360 Technology Co. (NYSE:
) is expected to report fourth quarter EPS of $0.17 vs. $0.20 a
year ago. Smith and Wesson Holding Corp. (NYSE:
) is expected to report third quarter EPS of $0.23 vs. $0.07 a year
On the economics calendar Tuesday, chain store sales and the
Redbook are due out followed by the ISM Non-Manufacturing Index,
the first major indicator ahead of Friday's payrolls report. Also,
the Treasury is set to auction 4- and 52-week bills and the Fed's
Jeffrey Lacker is set to speak. Overnight, Australian and Eurozone
GDP data are due out and a speech from Bank of England Governor
Mervyn King as well as a German 5-year bond auction should move
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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