Futures rise as leaders pledge to resume budget talks

Markets point higher ahead of negotiations aimed to avoid the fiscal cliff.

By Benzinga Dec 26, 2012 10:04AM
zurbar age fotostockU.S. equity futures rose slightly in thin overnight trade after President Obama pledged to resume budget talks as soon as leaders returned to Washington after the Christmas break. Earlier this week, it seemed unlikely that any deal would be reached as the sides were vastly different in their approaches to fiscal reform and were not communicating well following the failed Plan B in the House.

In other news, Volkswagen AG (VLKAY) and General Motors (GM) are set to see market share gains in the domestic Chinese market in 2013 as territorial disputes weaken the market power of Japanese makers such as Honda Motor (HMC) and Toyota Motors (TM).

Despite most markets being closed on Christmas day, the interbank forex markets were open and the GBP/USD cross flash crashed yesterday, dropping from 1.6140 to 1.5899 before retracing the entire move downwards.
  • S&P 500 futures rose 2 points to 1,421.75.
  • The EUR/USD was higher at 1.3212.
  • Spanish 10-year government bond yields were unchanged at 5.257%.
  • Italian 10-year government bond yields were unchanged at 4.464%.
  • Gold fell 0.2% to $1,656.10 per ounce.
Asian markets
Asian shares rose in thin overnight trade on renewed hopes that some sort of deal can be reached in Washington to avoid the Fiscal Cliff and on the dovish Bank of Japan minutes released overnight. The Japanese Nikkei Index rose 1.49% on new hopes of easing while the Shanghai Composite Index rose 0.25% and the Hang Seng Index gained 0.16%. In addition, the Korean Kospi Index rose 0.02% and Australian shares gained 0.25%.

European markets
European markets were closed on Wednesday in observance of Boxing Day.

Commodities
Commodities were were mixed overnight with energy futures rising and precious metals lagging. WTI crude futures gained 0.59% to $89.13 per barrel and Brent crude futures gained 0.75% to $109.62 per barrel. Copper futures gained 0.61%, rising to $356.75, on hopes that renewed stimulus in Japan will boost growth and copper demand. Gold was lower and silver futures were flat at $29.90 per ounce.

Currencies
Currency markets had a slight risk-on tone overnight in very thin trade as the large European market remained closed. The EUR/USD was higher at 1.3212 and the dollar gained demonstrably against the yen, rising 0.76% to 85.41. Overall, the Dollar Index fell 0.08% on weakness against the euro, the Swiss franc, and the Swedish krone, and strength against the yen off-setting this weakness. In addition, the Australian dollar rose against the greenback with copper prices and was even stronger against the yen.

Earnings
No notable companies are expected to report earnings Wednesday.

Economics
On the economics calendar Wednesday, same-store sales and the Redbook are due out and will shed light on retail sales over the holiday week. Later, the Case-Shiller home price index is due out and the Richmond Fed manufacturing index and investor sentiment are also expected. In addition, the Treasury is set to auction four-week, three-month, and six-month bills.

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16Comments
Dec 27, 2012 3:46PM
avatar

The Republican, Neo-Con. Libertarian and Tea Party Fascists plans to take over America will never succeed as long as all us vigilant, just and patriotic Democrats are there to STOP you.

 

It will NEVER happen under our watch!

 

youtube.com/watch?v=7BZCfbrXKs4

 

God bless Freedom, Prosperity and Justice for all in America!

 

P.S. DIE WALL STREET, DIE!

Dec 26, 2012 10:34AM
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Next up for the Republicans is Plan C for "Catastrophe".

 

The Republicans have a mandate,.... and his name is Grover.

 

More Republicans will be removed from office in 2014. Thank God!

 

Chris Van Holen and Elizabeth Warren in 2016 & 2020!

 

God bless America!

Dec 26, 2012 11:08AM
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As long as Obama continues to show his FAILED leadership, we will go over the cliff.

 

The man is a LAZY, arrogant, corrupt Imbecile.  He is working as hard on this as  he is on jobs.  The house as basically said, OK you railed against the W tax cuts for 10 years, we will let them expire, if only to get the 47% leech class to begin to pay for Obamanomics.  

 

Of course the socialist wants someone else to pay.  Of course he refuses to cut 10 trillion in spending over 10 years (which will still leave us with a  300 billion a year deficit!).

 

The man is STUBBORN and cares squat about the middle class.  He has been waging war on the middle class like Marx said has to be done.   Enjoy your 5th annual recovery summer.

 

The democrats should rename their party the LEECH MORON's PARTY...

Dec 26, 2012 6:40PM
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I see the far is continuing to get their ideas from Rush.The GOP is too lazy to think for themselves.

It`s easy for them to turn on the radio and be a Rush bootlicker.

Dec 26, 2012 12:57PM
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Futures rise my azz....If we are depending on people in Washington; Our boat has sunk.

We are the Luisitania(sp).

Dec 26, 2012 6:33PM
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It`s the TEA party that wants us to go over the cliff.Even my right wing relatives are

complaining about Boehner`s lack of leadership in not holding his party together.

Their new name for him is John Boner.

Dec 26, 2012 8:51PM
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HOW'S THE air where you live Crazy...Polluted ??
Dec 26, 2012 11:49AM
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The Party of NO! Now there's some real leadership. LMAO

 

Just say NO to the Party of NO! USELESS IMBECILES!

Dec 27, 2012 12:00AM
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The sentence for the horrendous crime of being a Republican is DEATH.

 

The only good Republican is a DEAD Republican!

 

America will only be safe and prosper once all the Republican TYRANTS have been EXTERMINATED.

 

The upcoming Revolution will make sure that happens.

 

God bless America!

 

 

Dec 26, 2012 2:45PM
avatar

HILLARY IN 2016....

 

Maybe Chris and Elizabeth in '20.....?

 

The Repubs have cut off all their Toes.....Let them eat Cake.

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