US: Dow Futures: 13168.00 (-0.16%), S&P 500 Futures: 1409.90 (-0.19%), NASDAQ Futures: 2777.00 (0.00%)
Europe: CAC: 3438.46 (-0.71%), DAX: 7026.93 (-0.42%), FTSE: 5854.17 (-0.35%).<
: Australia: 4337.00 (0.18%), China: 2262.79 (0.00%), Hong Kong: 20790.98 (1.29%), India: 5358.50 (0.76%), Japan: 10050.39 (-0.59%).
- Metals: Gold: 1674.50 (-0.31%), Silver: 32.83 (-0.81%), Copper: 3.90 (-0.48%)
Energy: Crude Oil: 104.49 (-0.70%), Natural Gas: 2.14 (-0.70%)
- Commodities: Corn: 6.57 (1.40%), Soya Bean: 14.15 (1.14%), Wheat: 6.52 (-0.76%)
Currency: EUR/USD: 1.3317 (-0.02%), GBP/USD: 1.5977 (-0.29%), USD/JPY: 82.1700 (0.12%)
- 10 year US Treasury: 2.170% (-0.012)
Market and Economy News Update
U.S. stock-index futures trading higher: U.S. markets are poised to open slightly lower on Tuesday after closing on multi-year highs yesterday. The Dow and S&P 500 futures were all trading marginally in the red.
European markets fall: European markets were trading in the red on Tuesday as investors awaited a report on U.S. factory orders. Sentiment also turned negative amid growing investor worries over Spain’s ability to tackle its deficit. The FTSE 100 (INDEXFTSE:UKX) and the German DAX (INDEXDB:DAX) were down 0.4 percent, while the CAC 40 (INDEXEURO:PX1) was trading 0.7 percent lower.
Spain’s public debt to reach 79.8 percent of GDP: The Spanish finance ministry said on Tuesday public debt will reach 79.8 percent of gross domestic product in 2012, well above the European Union’s recommended 60 percent ceiling. Spain’s public debt ratio has grown uninterrupted since the first quarter of 2008 due to falling tax revenues and an increase in jobless benefits and other social spending.
Asian markets end higher: Most Asian markets ended higher on Tuesday on signs of strength in the U.S. manufacturing sector. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) fell 0.6 percent after the yen touched 81.56 per dollar, the strongest since March 9. The HANG SENG INDEX (INDEXHANGSENG:HSI) snapped a four-day losing streak and closed 1.3 percent higher. The S&P/ASX 200 (INDEXASX:XJO) index gave up early morning gains, and ended marginally in the green, after the Reserve Bank of Australia left interest rates unchanged. Mainland Chinese markets remained closed for a holiday, and are set to reopen Thursday.
Australian Central Bank keeps interest rates unchanged: Ignoring growing concerns about job losses and a slowdown in the non-mining sector, the Reserve Bank of Australia has left interest rates unchanged at 4.25 percent. The decision was in line with most economists’ predictions, and the central bank said that it first wanted to ascertain whether inflation had moderated before deciding whether to ease policy.
Company News Update
- Shares of automakers Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) will be in focus today, ahead of the ahead of U.S. auto sales figures due out for release at 2 P.M. ET.
- Following on gains of more than 17 percent Monday, Avon Products, Inc. (NYSE:AVP) rose 1.3 percent in pre-market trading today after the company rejected a $10 billion takeover offer from Coty Inc.
- CVR Energy, Inc. (NYSE:CVI) gained 6.3 percent in morning trade after top shareholder Carl Icahn said 55 percent of the crude oil refiner’s outstanding shares were tendered in support of his bid to buy the company. Story to follow shortly.
- Netflix, Inc. (NASDAQ:NFLX) fell 2.4 percent in pre-market New York trading after the online movie service was downgraded to “equal weight” from “overweight” at Barclays Capital.
- Cavium Inc (NASDAQ:CAVM) is trading 1.5 percent lower after the California-based chipmaker, citing weakness in the service provider and broadband markets, lowered its first-quarter revenue growth outlook.
- Uranium Energy Corp. (NYSEAMEX:UEC) fell 6.7 percent after the developer of a mine in Texas said it plans to sell up to 5.6 million shares at $3.60 each to raise up to $20.0 million.
- Banks fell all across Europe, with the Royal Bank of Scotland Group plc (LON:RBS) (NYSE:RBS) down 2.9 percent and Barclays PLC (LON:BARC) (NYSE:BCS) declining 2 percent. In France, BNP Paribas SA (EPA:BNP) gave up 1.7 percent, while Credit Agricole SA (EPA:ACA) fell 2.1 percent. Spanish banks were among the biggest losers after government data showed unemployment in the country rose 0.8 percent in March. Banco Santander, S.A. (ADR) (NYSE:STD) shed 1.9 percent, while Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) fell 2 percent.
- AstraZeneca plc (ADR) (NYSE:AZN) increased 0.8 percent, after news reports suggested the British drugmaker will team up with Amgen, Inc. (NASDAQ:AMGN) to develop and sell five experimental Amgen drugs that target inflammatory diseases.
- Cairn Energy PLC (LON:CNE) gained 4.9 percent in London trading, after the oil and gas company bought Agora Oil & Gas, a private Norwegian company, for $450 million in shares and cash. David Einhorn owns a stake in Cairn Energy-http://www.valuewalk.com/2012/03/david-einhorns-greenlight-capital-bulds-stake-in-cairn-energy/
- Germany pharmaceutical major, Bayer AG (FRA:BAYN) said it had received positive results in a phase three trial for its cancer drug Regorafenib. The stock climbed 1.4 percent.
- Dutch specialty chemicals firm Akzo Nobel N.V. (AMS:AKZA) fell 2.2 percent after Nomura downgraded the stock to “neutral” from “buy”.
· Sumitomo Realty & Development Co., Ltd. (TYO:8830) slumped 3.6 percent in Tokyo amid reports that that the company is planning to build five major real-estate projects in Tokyo at a cost of more than ¥600 billion ($7.3 billion).
· Electronics maker, Kyocera Corporation (TYO:6971), that gets more than half of its sales outside Japan, lost 1.1 percent, after the yen rose to its highest level in three weeks against the dollar.
· Mitsui Chemicals, Inc. (TYO:4183) was the top gainer in the Nikkei 225, rising 3.3 percent, after the stock was raised to “buy” from “underperform” at Jefferies, citing favorable inventory cycle and rising product prices for petrochemical company.
· Chinese internet giant Tencent Holdings Ltd (HKG:0700) was among the best performers in the Hang Seng Index, gaining 2.9 percent, after Goldman Sachs upgraded the stock from “neutral” to “buy”.
· Australia's largest department store chain, Myer Holding Limited (ASX:MYR) slipped 1.8 percent and electronics retailer JB Hi-Fi Limited (ASX:JBH) fell 0.94 percent due to weaker than expected retail trade data for February.
Economic Calendar for Tuesday, April 3, 2012:
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending March 31, 2012)
08:55 A.M. ET: Redbook (Week ending March 31, 2012)
10:00 A.M. ET: Factory Orders (MoM) (February)
11:30 A.M. ET: 4-Week Bill Auction
11:30 A.M. ET: 52-Week Bill Auction
02:00 P.M. ET: FOMC Minutes
02:00 P.M. ET: Auto Sales (March)
02:00 P.M. ET: Truck Sales (March)
04:05 P.M. ET: San Francisco Federal Reserve Bank President John Williams speaks.