Futures rise on strong Chinese GDP

Strong industrial production data out of China and Japan boost stocks ahead of the consumer confidence report.

By Benzinga Jan 18, 2013 9:27AM
zurbar age fotostockU.S. equity futures rose slightly overnight following the release of China's fourth quarter GDP. The National Statistics Bureau reported that fourth quarter GDP rose at an annualized rate of 7.9%, better than the 7.8% forecast by economists and better than the 7.4% rate of growth seen in the third quarter.

In other news, Spanish and Italian industrial production dropped precipitously in November. Spain's industrial production fell 1.5% in the month on expectations of a 2.5% rise and Italian industrial production fell 0.5% on expectations of a 2.0% rise.

Chinese industrial production rose faster than expected in the fourth quarter, alongside GDP, rising 10.3% vs. the 10.1% estimate of economists. Also, Chinese retail sales rose at an annualized rate of 15.2% in December, better than estimates of a 14.9% rise.

Spain's bad bank ratio rose in November to 11.38% from 11.23%, more pain for the Iberian economy.
  • S&P 500 futures rose 1.10 points to 1,476.80.
  • The EUR/USD was was slightly lower at 1.3362.
  • Spanish 10-year government bond yields rose to 5.129%.
  • Italian 10-year government bond yields fell to 4.181%.
  • Gold rose slightly by 0.02% to $1,691.20 per ounce.
  • Click here for more of Benzinga's Top News stories.
Asian markets
Asian shares were higher overnight following the strong Chinese GDP report and also on strong industrial production data from Japan. The Japanese Nikkei Index rose 2.86% and the Shanghai Composite Index rose 1.41% while the Hang Seng Index rose 1.12%.

European markets
European shares were higher after a whipsaw open despite the weak Italian and Spanish data. The Spanish Ibex Index rose 0.45% and the Italian MIB Index rose 0.45% as well. Meanwhile, the German DAX gained 0.14% and the French CAC rose 0.36% while U.K. shares rose 0.26%.

Commodities were mixed overnight with oil lagging and metals rising. WTI crude futures fell 0.16% to $95.34 per barrel and Brent crude futures fell 0.08% to $111.01 per barrel. Copper futures rose 0.25% to $367.05 per pound following the strong China data. Gold was slightly higher and silver futures rose 0.17% to $31.87 per ounce.

Currency markets were much quieter than previous days overnight save for the Swiss franc. The EUR/USD was lower at 1.3362 and the dollar fell against the yen to 89.96 after breaching 90 Thursday. Overall, the Dollar Index rose 0.15% on strength against the euro, the pound, the Canadian dollar, and the Swiss franc. Notably, the USD/CHF rose 0.56% to 0.9377 and the EUR/CHF rose 0.31% to 1.2513, the highest in 22 months. Barclays analysts see the EUR/CHF heading towards 1.3210, the 200-week moving average, over the next few months. Also, Swiss media has been reporting that the Swiss National Bank may hike the peg to 1.25.

Premarket movers
Stocks moving in the premarket included:
  • Carnival Corporation (CCL) shares rose 1.6% premarket after it announced that it kept its dividend constant at $0.25 per share.
  • Cliffs Natural Resources (CLF) shares fell 2.43% premarket following the company's announcement Thursday that it is set to divest its Brazilian iron ore operations.
  • AT&T (T) shares fell 1.36% premarket as the company announced that it is taking a $10 billion charge on pension related costs in the fourth quarter.
  • Citigroup (C) shares fell 0.8% premarket as the company reported earnings that disappointed investors.
Notable companies expected to report earnings Friday include:
  • Johnson Controls (JCI) is expected to report first quarter earnings per share of $0.51 vs. $0.60 a year ago.
  • Morgan Stanley (MS) is expected to report fourth quarter EPS of $0.29 vs. a loss of $0.14 per share a year ago.
  • Schlumberger (SLB) is expected to report fourth quarter EPS of $1.08 vs. $1.11 a year ago.
  • SunTrust Banks (STI) is expected to report fourth quarter EPS of $0.61 vs. $0.28 a year ago.
On the economics calendar Friday, the preliminary University of Michigan Consumer Confidence survey is due out.

More from Benzinga
Click here for your free two week trial of Benzinga Pro!
Jan 18, 2013 10:10AM
The Euro is falling against the USD - if recent history is any indication, this will mean US stocks will dip today.  Either way, you can play both sides against the middle and make out pretty well.  Go long stocks, short the Euro as a hedge at 500:1 and let it go if you float out of the money.  Just close out before the end of the day.
Jan 18, 2013 10:06AM
Good time to be invested in Foreign stocks...   Strong GDP compared to our sick sub 2% GDP...

Factor out the increase in M2  (58%) over the past 4 years and the market is up under 10%... 
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.
100 character limit
Are you sure you want to delete this comment?


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.


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.

124 rated 1
266 rated 2
452 rated 3
702 rated 4
671 rated 5
604 rated 6
640 rated 7
495 rated 8
267 rated 9
158 rated 10

Top Picks




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.