Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Market Primer: Futures Edge Higher In Calm Before the Storm

Published 06/18/2013, 07:50 AM
Updated 05/14/2017, 06:45 AM
Futures Edge Higher In Calm Before the Storm
U.S. equity futures rose slightly in pre-market trade Tuesday as investors eagerly awaited the FOMC decision and statement Wednesday. Monday trading was a whip-saw marked by a steep sell-off over tapering fears.

Top News
In other news around the markets:
  • The German ZEW Economic Sentiment Index rose to 38.5, beating expectations of a reading of 38.1 and better than the prior 36.4.
  • European Central Bank President spoke in Jerusalem overnight and hinted that the LTRO operations could be extended as a means of providing additional bank liquidity. Speculation had grown that the ECB could do this however it is the first time Draghi has addressed it directly.
  • European car sales fell to a 20-year low in May as new car registrations fell to 1.08 million from 1.15 million a year ago. Sales at General Motors (GM) fell over 10 percent.
  • S&P 500 futures rose 2.8 points to 1,636.50.
  • The EUR/USD was higher at 1.3396.
  • Spanish 10-year government bond yields fell 1 basis point to 4.57 percent.
  • Italian 10-year government bond yields fell 1 basis point to 4.26 percent.
  • Gold fell 0.41 percent to $1,377.40 per ounce.
Asian Markets
Asian shares were mixed overnight in unusually quiet trading as markets eagerly anticipate the Fed's decision, the proverbial calm before the storm. The Japanese Nikkei 225 Index declined 0.2 percent and the Topix Index gained 0.15 percent. Shares in Hong Kong were flat while the Shanghai Composite Index gained 0.41 percent. Also, the Korean Kospi rose 0.93 percent while Australian shares fell 0.24 percent.

European Markets
European shares were mixed overnight ahead of the Fed following mixed regional economic data. The Spanish Ibex Index rose 0.41 percent and the Italian FTSE MIB Index gained 0.16 percent. Meanwhile, the German DAX fell 0.32 percent and the French CAC 40 fell 0.31 percent while the U.K. FTSE rose 0.36 percent.

Commodities
Commodities were weaker overnight, erasing Monday's gains. WTI Crude futures fell 0.2 percent to $97.57 per barrel and Brent Crude futures declined 0.19 percent to $105.27 per barrel. Copper futures fell 0.75 percent to $317.35 per pound. Gold was lower and silver futures fell 0.22 percent to $21.71 per ounce.

Currencies
Currency markets sang a familiar tune overnight as the yen and the Australian dollar weakened precipitously. The EUR/USD was higher at 1.3396 and the dollar gained against the yen to 95.14. Overall, the Dollar Index fell 0.17 percent on weakness against the euro and the Canadian dollar.Gen

Earnings Reported Yesterday
Key companies that reported earnings Monday include:
  • Korn/Ferry International (KFY) reported fourth quarter EPS of $0.32 vs. $0.31 expected on revenue of $238.6 million vs. $223.58 million.
Pre-Market Movers
Stocks moving in the pre-market included:
  • GenMark Diagnostics (GNMK) shares fell 4.74 percent pre-market after the company lowered full-year revenue guidance.
  • Rambus (RMBS) shares climbed 3.85 percent pre-market after the company signed a new contract with STMicroelectronics (STM).
  • New Mountain Finance Corp. (NMFC) shares declined 3.16 percent pre-market after the company announced a secondary offer.
Earnings
Notable companies expected to report earnings Tuesday include:
  • Adobe (ADBE) is expected to report second quarter EPS of $0.34 vs. $0.60 a year ago.
  • FactSet Research Systems (FDS) is expected to report third quarter EPS of $1.15 vs. $1.05 a year ago.
  • La-Z-Boy Inc. (LZB) is expected to report fourth quarter EPS of $0.28 vs. $0.18 a year ago.
Economics
On the economics calendar Tuesday, CPI and the NAHB Home Price Index are due out as well as the Redbook and Housing Starts. Overnight, the Japanese Trade Balance and the Bank of England's MPC Minutes are due out.

BY Matthew Kanterman

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.