Futures surge as global shares rebound

US markets are set to follow global shares higher after reassuring comments from central banks around the world about monetary policies.

By Benzinga May 28, 2013 8:31AM

zurbar age fotostockBy Matthew Kanterman


U.S. equity futures rose sharply in early premarket trade as fears of the Federal Reserve tapering its easing measures subsided somewhat. Those fears drove markets lower last week. Eyes will be on key retail earnings and economic data in Tuesday's session as well as comments from the Europe-Next Steps conference in Paris.


In other news, AstraZeneca (AZN) announced its intention to acquire Omthera Pharmaceuticals (OMTH) for $12.70 per share, a premium of 88% over Friday's closing price.


Japanese Prime Minister Shinzo Abe's top economic adviser Koichi Hamada spoke overnight, saying that Bank of Japan Governor Kuroda should ease further if he deems it necessary and not let policy be dictated by market pressures. Recently, fears have grown over the rise in bond yields associated with Japan's easing, but these Hamada's comments seem to be quelling some fears.


Christian Noyer, Banque de France chief and European Central Bank board member spoke overnight, saying that no major central bank has ever lowered deposit rates below zero into negative territory and mentioned that such policies had mixed results in smaller countries. The comments come as some economists still expect the ECB to ease policy further and potentially cut deposit rates into negative territory.

  • S&P 500 futures rose 11.1 points to 1,661.70.

  • The EUR/USD was lower at 1.2920.

  • Spanish 10-year government bond yields rose 1 basis point to 4.34%.

  • Italian 10-year government bond yields rose 1 basis point to 4.06%.

  • Gold fell $7.70 or 0.56% to $1,378.90 per ounce.

  • Click here for more of Benzinga's Top News stories!

Asian markets

Asian shares were stronger overnight on relaxed fears over Japan's massive easing efforts as well as reduced fears over China's economy spurred by weaker than expected data last week. The Japanese Nikkei Index rose 1.2% and the Shanghai Composite Index rose 1.24% while the Hang Seng Index gained 1.05%. Also, the Korean Kospi gained 0.32% and Australian shares added 0.22%.


European markets

European shares were higher for the second consecutive day as U.K. markets reopened Tuesday following a bank holiday on Monday. The Spanish Ibex Index rose 1.32% and the Italian FTSE MIB Index gained 1.56%. Meanwhile, the German DAX rose 1.1% and the French CAC 40 gained 1.26% while U.K. shares rallied 1.66%.


Commodities

Commodities were mixed overnight as energy futures rallied while metal futures were mostly lower as the Dollar continued its trend of strengthening. WTI crude futures rose 0.5% to $94.62 per barrel and Brent crude futures gained 0.89% to $103.53 per barrel. Copper futures added 0.44% to $331.00 per pound. Gold was lower and silver futures declined 1.07% to $22.26.


Currencies

Currency markets continued to show dollar strength overnight as the greenback rose against most major trading partners while the yen resumed its decline. The EUR/USD was lower at 1.2920 and the dollar gained against the yen to 101.99, a gain of 1.02%. Overall, the Dollar Index gained 0.2% on strength against the yen, the euro, the Swiss franc, and the Canadian dollar. Notably, the Australian dollar was higher across the board despite Goldman Sachs making negative comments on the currency.


Earnings reported Friday

Key companies that reported earnings Friday include:

  • Abercrombie & Fitch (ANF) reported a first quarter loss of $0.09 per share vs. an expected loss of $0.05 per share on revenue of $838.8 million vs. $942.86 million expected.

  • Foot Locker (FL) reported first quarter earnings per share of $0.91 vs. $0.87 expected on revenue of $1.64 billion vs. $1.63 billion expected.

Premarket movers

Stocks moving in the premarket included:

  • AstraZeneca (AZN) shares gained 2.61% on the acquisition announcement.

  • Citigroup (C) shares rose 1.56% in the premarket as financials rose as a sector.

  • Exelon Corp. (EXC) shares declined 1.3%, leading utilities lower as reports showed that power rates are declining and also on apparent sector rotation into cyclicals such as financials.

  • Ford (F) shares rose 1.35% premarket after Barron's made positive comments on the stock this weekend, saying that earnings will grow as Europe recovers.

Earnings

Notable companies expected to report earnings Tuesday include:

  • Canadian Solar (CSIQ) is expected to report a first quarter loss of $0.78 per share vs. a loss of $0.49 per share a year ago.

  • Guidewire Software (GWRE) is expected to report first quarter earnings per share of $0.03 vs. $0.10 a year ago.

  • Tiffany (TIF) is expected to report first quarter earnings per share of $0.52 vs. $0.64 a year ago.

Economics

On the economics calendar Tuesday, the S&P Case-Shiller Index kicks off the calendar followed by consumer confidence data, the Richmond Fed manufacturing index, and the Dallas Fed manufacturing index. Also, the Treasury is set to auction three- and six-month bills and two-year notes. Overnight, Bank of Japan Governor Kuroda is expected to speak, German unemployment data, German CPI, and Brazilian GDP are expected.


More from Benzinga

2Comments
May 28, 2013 8:47AM
avatar

I would look for 125-150 upside on DOW today...Maybe even more??

Things aren't as bad as many think or try to talk down..

Forget about scumbags and manipulators today..

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.

113
113 rated 1
268
268 rated 2
422
422 rated 3
632
632 rated 4
512
512 rated 5
518
518 rated 6
682
682 rated 7
523
523 rated 8
343
343 rated 9
124
124 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
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.