Futures Rise on Global Strength
U.S. equity futures rose in early trade as Asian shares rallied
and European shares traded mixed. Eyes are on earnings globally as
the economic calendar was rather light overnight.
In other news around the markets:
China's Ministry of Commerce issued a statement overnight saying
that China's 2013 economic situation is still very severe and that
the Ministry fears a rise in global trade protectionism. Economists
at HSBC believe that the RBA easing cycle is over and that the bank
could begin raising rates by the end of the year, bullish for the
Aussie dollar, Australian stocks, and global mining broadly. The
CBO sees the federal deficit falling 27 percent in 2013 to $616
billion from $845 billion in 2012. The CBO sees the debt-to-GDP
ratio falling to 77 percent by 2023. S&P 500 futures rose 1.5
points to 1,507.40. The EUR/USD was lower at 1.3535. Spanish
10-year government bond yields fell to 5.36 percent. Italian
10-year government bond yields rose to 4.47 percent. Gold fell 0.17
percent to $1,670.60 per ounce.
Asian shares were higher as the Nikkei Index had its best day
since 2008. The Japanese Nikkei Index rose 3.77 percent and the
Shanghai Composite Index rose 0.06 percent while the Hang Seng
Index rose 0.47 percent. Also, the Korean Kospi fell 0.1 percent
and Australian shares rose 0.78 percent.
European shares were mixed as peripheral shares traded lower in
early trade. The Spanish Ibex Index fell 0.47 percent, led lower by
financials, and the Italian FTSE MIB Index declined 0.92 percent,
led lower by financials as well. Meanwhile, the German DAX fell
0.21 percent, the French CAC fell 0.43 percent, and U.K. shares
rose 0.39 percent. It is important to note that European shares
just took a leg down in the last 15 to 20 minutes.
Commodities were were mostly lower overnight on global growth
fears following comments from the Chinese Ministry of Commerce. WTI
Crude futures fell 0.61 percent to $96.05 per barrel and Brent
Crude futures fell 0.19 percent to $116.32 per barrel and Natural
Gas futures rose 1.35 percent to $3.45 per million BTU. Copper
futures fell 0.65 percent to $374.55 per pound. Gold was lower and
silver futures fell 0.63 percent to $31.68 per ounce.
Currency markets were in a clear risk-off mode as the euro
weakened and the dollar gained overnight. The EUR/USD was lower at
1.3535 and the dollar gained slightly against the yen to 93.67.
Overall, the rose 0.3 percent on strength against the euro, the
Swiss franc, and the Canadian dollar. In addition, the AUD/USD fell
sharply overnight by 0.84 percent to 1.0303 and the Aussie was
broadly weak, falling sharply against the yen and the euro as
Stocks moving in the pre-market included:
Royal Bank of Scotland (NYSE:
) shares traded 1.1 percent higher in London trading and New York
listed shares look set to follow as the company reached a
settlement with regulators over the Libor scandal. Hewlett-Packard
) shares rose 2.95 percent pre-market as the company's board is
debating breaking up the company to extract value for shareholders.
) shares fell 0.7 percent pre-market as the company had to pay a $1
million fine for a refinery fire. BlackBerry (NASDAQ:
) shares fell 3.31 percent pre-market after rising 6.93 percent
Tuesday as the company gets set for the global launch of its new
Notable companies expected to report earnings Wednesday
CVS Caremark (NYSE:
) is expected to report fourth quarter EPS of $1.10 vs. $0.89 a
year ago. Green Mountain Coffee Roasters (NASDAQ:
) is expected to report first quarter EPS of $0.65 vs. $0.60 a year
ago. Marathon Oil (NYSE:
) is expected to report fourth quarter EPS of $0.67 vs. $0.78 a
year ago. Time Warner (NYSE:
) is expected to report fourth quarter EPS of $1.10 vs. $0.94 a
year ago. Visa (NYSE:
) is expected to report first quarter EPS of $1.79 vs. $1.49 a year
On the economics calendar Wednesday, MBA Purchase Applications
and the EIA Petroleum Status Report are due out. Also, the Treasury
is set to auction STRIPS and give its quarterly refunding
announcement. Overnight, there is lots of data that can move
markets, with Australian employment data, the Bank of England and
the European Central Bank rate decisions, and British industrial
production all expected.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Gain access to more investing ideas, tools & education.
Get Started on Marketfy, the first ever curated
& verified Marketplace for everything trading.