Futures rise on global growth bets

Unexpectedly positive data out of Europe and a potential fiscal cliff decision cheer investors.

By Benzinga Dec 11, 2012 9:12AM

zurbar age fotostockU.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

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.

 

Currencies

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.

Earnings

  • Dollar General (DG) is expected to report third quarter earnings per share of $0.60 vs. $0.50 a year ago.

Economics

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.

 

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1Comment
Dec 11, 2012 10:28AM
avatar
The New World Order is continuing to gain strength and speed.  The agreements and goals are already in place; the hints at negotiation are just smoke, and the America we used to know is beginning to fade in the rear view mirror.  None of what is going on in Washington now is but a sideshow.  How my fellow Americans are letting their autonomy be negotiated away behind closed doors is disgraceful.  Every person with an ounce of economic sense knows socialism doesn't work.  You need individuals working as single entities striving for a better life and future.  The spirit of competitivism will be forever subdued as the American middle class pays the price for the entire worlds economic malaise and not one persons opinion  means dittle.  We could describe our present representation in DC transitional.  They will stall us out and using their media run us in circles until we cave and allow them to dictate each of our futures as they play us into the unrepresented hands of the International Corporatism that owns their allegiance. For those of you who thank this this is but hot air I say keep checking in.  Hot air will eventually turn to a cold pall,  and then all the structures we had in place for that kid in Iowa to have a better life and future will be replaced by the hope for the kids in Indonesia to be awarded a mediocre political fantasy life as he is engulfed by the Corporatism of this New World Order.  JMHO
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