Futures rise on German business confidence

Shares are up after a key survey's better-than-expected findings.

By Benzinga Feb 22, 2013 9:06AM
Image: Stock market Traders (© Comstock/Corbis)By Matthew Kanterman 

The German IFO Business Confidence Survey showed that the nation's business leaders are more confident about the future of the Eurozone economy than expected, with the index rising to 107.4, beating expectations of a reading of 105 and better than last month's 104.3.


In other news around the markets:


The European Union has cut its growth forecasts for 2013, slashing estimates to a contraction of 0.3% from a previously projected growth of 0.1%. German growth forecasts were cut to 0.5% from 2% previously, French forecasts were cut to 0.1% from 1.2% , and U.K. growth was cut to 0.9% from 1.9% previously.


The Bank of England and the People's bank of China have confirmed that they are in talks to set up three-year swap lines aimed at financing trade and direct investment and supporting financial stability.


German fourth-quarter GDP was reported as contracting 0.6% in the fourth quarter, in line with expectations, and growing 0.1% on an annualized basis, also in line with expectations.


Some trading highlights:

  • S&P 500 futures rose 3.6 points to 1,504.80.
  • The EUR/USD was was higher at 1.3208 following the German IFO data.
  • Spanish 10-year government bond yields fell to 5.17% after Spain reported that its deficit widened to 10.2% in 2012.
  • Italian 10-year government bond yields fell to 4.46% .
  • Gold rose 0.03% to $1,579.30 per ounce.
  • Click here for more of Benzinga's Top News stories!

Asian Markets

Asian shares were mixed overnight as Chinese shares fell on fears that the property market is overheating, which could lead to the PBOC entering an earlier-than-anticipated tightening cycle. The Japanese Nikkei Index rose 0.68%, the Shanghai Composite Index fell 0.51% and the Hang Seng Index declined 0.54%. Notably, Chinese shares closed down almost 5% on the week. Also, the Korean Kospi gained 0.18%, and Australian shares rose 0.76% .


European Markets

European shares were higher following the strong IFO survey but have given back some gains following the EU growth forecast cut. The Spanish Ibex Index rose 0.96%, and the Italian FTSE MIB Index rose 0.7%. Meanwhile, the German DAX gained 0.42%, the French CAC rose 1.11% and U.K. shares rallied 0.58%.


Commodities

Commodities were slightly higher in early Friday trade after taking a beating all week across the commodity complex. WTI Crude futures rose 0.16% to $92.99 per barrel, and Brent Crude futures rose 0.68% to $114.29 per barrel. Gold was higher, and silver futures rose 0.26% to $28.78 per ounce.


Currencies

Currency markets were rather quiet overnight as the Australian dollar popped on a technical bounce. The EUR/USD was higher at 1.3208, and the dollar rose against the yen to 93.28 while the pound sterling gained back against the dollar to 1.5258. Overall, the Dollar Index fell 0.16% on weakness against the euro, the pound and the Swiss franc despite strength against the yen and the Canadian dollar. Notably, the Australian dollar rose 0.69% against the greenback on a technical bounce to 1.0316 and rose even more against the yen.


Pre-Market Movers

Stocks moving before Friday's market open included:


  • Hewlett Packard (HPQ) shares rose 5.61% after the company reported better-than-expected earnings and disclosed no plans to break up the company.
  • American International Group (AIG) shares rose 4.64% as the company also reported operating earnings that beat analyst estimates, but it still reported a loss due to claims resulting from Hurricane Sandy.
  • Berkshire Hathaway (BRK.A)(BRK.B) shares rose 1.28% pre-market and remain just shy of the stock's all-time high as investors see a wave of new acquisitions boosting Buffett's war chest.
  • Caterpillar (CAT) shares rose 0.62% pre-market after declining 1.81% Thursday as the company warned that comparable sales in January slowed from a year ago.

Earnings

Notable companies expected to report earnings Friday include:


  • Abercrombie & Fitch (ANF) is expected to report fourth-quarter EPS of $1.95 vs. $1.12 a year ago.

Economics

On the economics calendar Friday, Fed member Jerome Powell is set to speak. Also, the ECRI weekly index is expected, and Canadian CPI is due out. Over the weekend, the Italian elections begin on Sunday. Polls close Monday with the first exit polls coming in the afternoon following the closing of the polls. 


Momentum has been on the side of former Prime Minister Silvio Berlusconi retaking power, however, there is a fear that the election could produce no majority and a stalemate similar to the one seen in Greece over the summer, only eight times larger.


More from Benzinga



2Comments
Feb 22, 2013 10:06AM
avatar
Are you serious? Headline reads Futures rise on German business confidence then in the same breath they say and by the way all of europe has cut ther full year forcasts. Sounds like a Bull story to me. Bull$%&@ maybe.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

109
109 rated 1
276
276 rated 2
421
421 rated 3
629
629 rated 4
511
511 rated 5
538
538 rated 6
686
686 rated 7
507
507 rated 8
331
331 rated 9
109
109 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
UPLULTRA PETROLEUM Corp10
TAT&T Inc9
COPCONOCOPHILLIPS9
DVNDEVON ENERGY CORPORATION9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.