By RTT News,
December 16, 2013, 06:40:00 AM EDT
(RTTNews.com) - Early indications suggest that U.S. Stocks may open notably higher on Monday, as global data offer encouragement to traders. The results of a business sentiment survey released from Japan and private sector activity data from Europe threw up encouraging results, lending credence to the theory that the global economic recovery is on a firmer footing. That said, sentiment over the course of the session may also depend on a few key economic data due in the session.
At 6:15 am ET, the Dow futures are adding 65 points, the S&P 500 futures are moving up 7.20 points and the Nasdaq 100 futures are adding 15.25 points.
U.S. stocks retreated in the week ended December 13th amid fears that the Fed may begin tapering its stimulus as early as December in the wake of some fairly robust economic data.
Several key market moving economic reports are due in the unfolding week, which however, is likely to be headlined by the 2-day FOMC meeting due to end on Wednesday and the ensuing Chairman's press conference. The spotlight of the week is also likely to be on the results of manufacturing surveys by the New York Federal Reserve and the Philadelphia Federal Reserve, the Federal Reserve's industrial production report for November, the National Association of Home Builders' housing market index for December, the Commerce Department's housing starts data for November, the weekly jobless claims data and the National Association of Realtors' existing home sales data for November.
The New York Federal Reserve is scheduled to release the results of its manufacturing survey for December at 8:30 am ET. Economists expect the manufacturing index to come in at 4.50 compared to -2.21 in November. The Labor Department will release its final estimates for third quarter productivity and costs also at 8:30 am ET. The consensus estimates call for a 2.9 percent quarter-over-quarter increase in non-farm productivity, while unit labor costs may have slipped 1.4 percent.
Markit is scheduled to release flash estimates of its December manufacturing survey for the U.S. at 8:58 am ET. Economists expect the manufacturing index to have risen to 55 in December from 54.3 in November.
The Treasury is due to release data on the flows of financial instruments into and out of the U.S. at 9 am ET.
The Federal Reserve is scheduled to release its industrial production report for November at 9:15 am ET. The consensus estimates call for a 0.6 percent month-over-month increase in industrial output, while capacity utilization may have edged up to 78.4 percent.
In corporate news, Gilead Sciences ( GILD ) announced that the FDA has approved the single tablet HIV-1 regimen Complera for use in virologically suppressed adult patients on a stable anti-retroviral regimen.
Xyratex (XTRX) said its board has amended its shareholder rights plan, extending the expiration date of the plan to December 17th, 2014 from December 17th, 2013. The company clarified that the amendment was not in response to any acquisition proposal.
The Asian markets retreated amid worries over monetary policy uncertainty in the U.S. ahead of the 2-day FOMC meeting.
The Japanese markets suffered under the weight of a stronger yen, which rallied in reaction to strong Tankan survey results. Japan's Nikkei 225 av closed down 250.20 points or 1.62 percent at 15,153. A majority of stocks declined in the session. Australia's All Ordinaries languished below the unchanged for the better part of the session before closing down 8.40 points or 0.16 percent at 5,093. Hong Kong's Hang Seng Index closed at 23,115, down 131.30 points or 0.56 percent, and China's Shanghai Composite closed 35.21 points or 1.60 percent lower at 2,161.
Flash estimates released by Markit Economics and HSBC showed that their index measuring manufacturing activity in China fell 0.3 points to 50.5 in December. The results of the quarterly Tankan survey by the Bank of Japan showed that its index measuring sentiment among large businesses rose to a 6-year high of 16 in the fourth quarter.
After a weak start, European stocks recovered notably, moving into positive territory by late morning trading and rallying thereafter in reaction to strong private sector activity data.
On the economic front, private sector activity data released by Markit Economic showed that activity gained momentum in December. The composite output index rose 0.4 points to 52.1 in December. The manufacturing PMI rose 1.1 points to 52.7, while the service sector PMI edged down 0.2 points to 51.
House price data released by Rightmove showed that house prices in the UK fell 1.9 percent month-over-month in December, the smallest drop since December 2006. The organization forecasts asking price growth of up to 8 percent for U.K. Houses in 2014.
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