Futures rise on global growth bets
Unexpectedly positive data out of Europe and a potential fiscal cliff decision cheer investors.
U.S. equity futures rose in premarket trading on renewed hopes of global growth following strong German ZEW economic survey data. The survey, a key indicator of German and European growth, rose to 6.9 in December from -15.7 in November and better than economist forecasts of -12.0.
In other news, former Italian Prime Minister Silvio Berlusconi, who has reinserted himself into the upcoming elections in April, said that the resigning Prime Minister Mario Monti's government had followed a German-centric economic model, taking Italy into recession. He is organizing a coalition to try to win a majority in the elections.
Spain sold 3.89 billion euros of 12- and 18-month bills, more than the targeted 3.5 billion euros, with yields falling and demand appearing strong.
Credit Suisse (CS) is the latest bank to announce 120 job cuts this morning.
- S&P 500 futures rose 3.2 points to 1,423.40.
- The EUR/USD was higher at 1.2971.
- Spanish 10-year government bond yields fell to 5.506%.
- Italian 10-year government bond yields fell to 4.736%.
- Gold fell 0.19% to $1,711.10.
Commodities were mixed overnight as energy futures rose and metals futures fell. WTI crude futures rose 0.5% to $85.99 per barrel and Brent crude futures rose 0.75% to $108.13 per barrel. Copper futures slipped 0.16% to $370.00 per pound as Chinese shares slipped. Gold was lower and silver futures fell 0.64% to $33.17.
Currency markets were in risk-on mode as traders sold the dollar and the yen and piled into risk assets. The EUR/USD was higher at 1.2971 and the dollar rose against the yen to 82.51. Overall, the Dollar Index slipped 0.13% on weakness against the euro, the pound, and the Swedish krone. However, the dollar was higher against the Swiss franc, with both currencies' central banks meeting this week. The AUD/USD bounced back after selling off overnight and the AUD/JPY rallied 0.23%.
Premarket movers include:
- Groupon (GRPN) shares rose 1.19% after falling over 9% Monday as investors discounted the chances of a takeover in the company that was widely rumored Friday.
- Zynga (ZNGA) shares rose 1.03% in the premarket as investors bought the stock in hopes that the company's move into real-money gaming will benefit shares.
- McDonald's (MCD) shares rose 0.67% premarket after the company reported much better than expected November comps Monday, with same store sales rising 2.4% vs. an estimated 0.2% rise.
- AIG (AIG) shares fell 0.33% premarket as the Treasury is selling a further part of its stake in the insurer.
- Dollar General (DG) is expected to report third quarter earnings per share of $0.60 vs. $0.50 a year ago.
On the economics calendar Tuesday, the NFIB small business outlook survey is due out as well as same-store sales. In addition, international trade and wholesale trade data are expected to be released. The Treasury is also set to auction four-week and 52-week bills and three-year notes.
More from Benzinga
MORE ON MSN MONEY
Copyright © 2013 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.
For years, Todd Mills pushed Frito-Lay to make taco shells from Doritos. He died from a brain tumor on Thanksgiving.
VIDEO ON MSN MONEY
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.