* US: Dow Futures: 12720.00 (1.55%), S&P 500 Futures: 1347.10 (1.87%), NASDAQ Futures: 2576.00 (1.91%)
* Europe: CAC: 3166.61 (3.63%), DAX: 6374.82 (3.53%), FTSE: 5609.58 (2.08%).
* Asia-Pacific: Australia: 4094.60 (1.23%), China: 2225.43 (1.33%), Hong Kong: 19441.46 (2.14%), India: 5278.90 (2.52%), Japan: 9006.78 (1.47%).
* Metals: Gold: 1588.10 (2.43%), Silver: 27.36 (4.26%), Copper: 3.46 (4.04%)
* Energy: Crude Oil: 80.87 (4.09%), Natural Gas: 2.78 (2.09%)
* Commodities: Corn: 6.46 (-0.39%), Soya Bean: 14.18 (-0.50%), Wheat: 7.74 (-0.52%)
* Currency: EUR/USD: 1.2685 (1.94%), GBP/USD: 1.5692 (1.11%), USD/JPY: 79.5600 (0.14%)
* 10 year US Treasury: 1.672% (0.092)
Financial and Economic News Update
U.S. stock-index futures soar: U.S. stock index futures are pointing to a sharply higher open on Friday after European leaders unexpectedly reached a deal on struggling euro zone banks. Investor optimism was further increased by a slightly higher than expected rise in U.S. personal income in May. The Dow futures, the S&P futures and the NASDAQ future are all trading more than a percent and half higher.
European markets jump higher: European markets are trading significantly higher, with the German DAX (INDEXDB:DAX) trading 3.5 percent higher at 6374.82, the FTSE 100 (INDEXFTSE:UKX) up 2.1 percent at 5609.58, and the CAC 40 (INDEXEURO:PX1) jumping 3.6 percent to 3166.61. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) soared 4 percent.
Asian markets end higher: Asian markets closed higher on Friday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) rising 1.5 percent to close above the key 9,000 level mark for the first time in seven weeks. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed up 2.2 percent at 19441.46, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended 1.4 percent higher to 2225.43 points. The S&P/ASX 200 (INDEXASX:XJO) index jumped 1.2 percent to 4,04.6. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index was the best performer in the region, ending up 2.6 percent.
Stocks in Focus
* Home builder KB Home (NYSE:KBH) reported a narrow than expected second-quarter loss narrowed of $24.1 million or 31 cents a share. Revenue increased 11 percent to $302.9 million, which also topped estimates.
* Goldman Sachs Group, Inc. (NYSE:GS) said it has eliminated several dozen positions in its U.S. operations, as it looks to cut costs amid a slowdown in capital market activity.
* Athletic apparel maker Finish Line Inc (NASDAQ:FINL) posted first quarter earnings of 24 cents a share, one cent above estimates. Revenue for the quarter stood at $319 million, in line with consensus estimates. The company has raised its full year earnings per share forecast.
* ServiceNow, the provider of cloud-based services for business, has priced its initial public offering above its expected range at $18, and is set to begin trading on the New York Stock Exchange this morning.
* Online publisher AOL, Inc. (NYSE:AOL) has promoted chief financial officer Arthur Minson to the newly created role of chief operating officer.
* GlaxoSmithkline plc (ADR) (NYSE:GSK) has extended its $2.6 billion offer to buy U.S. biotech company Human Genome Sciences (NASDAQ:HGSI) until July 20, Reuters reported.
* Electrical equipment maker AZZ Incorporated (NYSE:AZZ) posted fiscal first quarter earnings, excluding certain items, of $1.02 a share, that easily beat the average analysts’ estimate of 81 cents a share. The company also raised its full year profit and revenue guidance.
* Internet advertising company ValueClick Inc (NASDAQ:VCLK) has said that it expects second-quarter revenue to be at the high end of it’s previously forecast range of $155 million to $160 million. Revenue jumped 11 percent to $127.1 million that also topped Street expectations.
* The board of petroleum refiner HollyFrontier Corp (NYSE:HFC) has approved a new $350 million share buy-back program, bringing its total remaining authorization to about $410 million.
* Macquarie Group Limited has initiated coverage onFacebook Inc (NASDAQ:FB) with a “neutral” rating, and has set a price target of $34. Facebook was trading 1.8 percent higher in New York pre-market trading.
* Enterprise software maker Oracle Corporation (NASDAQ:ORCL) has been upgraded to “outperform” from “sector perform” at RBC Capital. The stock was up 1.5 percent.
* Saks Inc (NYSE:SKS) was lifted to “overweight” from “neutral” at JPMorgan Chase, with the target price raised to $12 from $11.
* Anheuser-Busch InBev NV (ADR) (NYSE:BUD), the maker of Budweiser and Stella Artois beers, has agreed to buy the 50 percent of Mexican brewer Grupo Modelo it does not already own, for $20.1 billion in cash.
* Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) could face a hefty fine of about 150 million pounds ($232.59 million) for colluding to manipulate the financial markets, the same offence that has hammered Barclays PLC (ADR) (NYSE:BCS) this week, British daily The Times reported.
* In a surprise announcement, Credit Suisse Group AG (ADR) (NYSE:CS) said it expects to make a profit in the second quarter. Shares of Credit Suisse have slumped to a 20-year low this week, and the statement might have been aimed to restore investor confidence.
* British investment company Melrose plc (LON:MRO)has agreed to buy German utility meter manufacturer Elster Group SE ADR (NYSE:ELT) for $2.3 billion.
* Swiss biopharmaceutical company Actelion (ATLN) has received U.S. Food and Drug Administration approval for its pulmonary arterial hypertension treatment, Veletri.
* The Berkeley Group Holdings plc (LON:BKG), the U.K.’s largest homebuilder by market value, reported a better than expected 58 percent rise in full year profit, amid robust sales, at higher prices.
* French retailer Casino Guichard Perrachon SA (EPA:CO) has agreed to acquire a 50 percent stake in supermarket chain, Monoprix, from its joint venture partner, Groupe Galeries Lafayette, for 1.18 billion euros.
* British oil company Cairn Energy PLC (LON:CNE) has raised about $365 million after selling a 3.5 percent stake in its Indian unit, Cairn India Limited (NSE:CAIRN).
* Luxury car maker Bayerische Motoren Werke AG (ETR:BMW)was upgraded to “buy” from “neutral” at UBS AG. Deutsche Boerse AG (ETR:DB1), the operator of the Frankfurt stock exchange, and French media company Vivendi SA (EPA:VIV), were raised to “overweight” from “neutral” at JPMorgan Chase & Co.
* Nomura Holdings, Inc. (ADR) (NYSE:NMR), Japan’s largest brokerage, will cut pay for top executives and will temporarily halt an equity sales operation, as part of its effort to solve a damaging insider trading scandal.
* U.S. memory chip-maker Micron Technology, Inc. (NASDAQ:MU) has agreed to buy bankrupt Japanese dynamic random access memory maker, Elpida Memory Inc (TYO:6665), for an estimated 200 billion yen ($2.5 billion), the Nikkei business daily reported.
* Australia second largest department store chain David Jones Limited (ASX:DJS) has received an unsolicited 1.65 billion Australian dollars ($1.67 billion) bid from little know British private equity firm, EB Private Equity.
* Malaysia’s state oil company, Petroliam Nasional Bhd (Petronas), will buy its Canadian joint-venture partner, Progress Energy Resources Corp. (TSE:PRQ), for 4.8 billion Canadian dollars ($4.6 billion).
* The Western Australian government has delayed a decision on the environmental assessment on Woodside Petroleum Limited (ASX:WPL)’s 35 billion Australian dollars ($35 billion) Browse liquefied natural gas project.
* Suzuki Motor Corporation (TYO:7269) jumped 3.3 percent in Tokyo trading after the Nikkei newspaper reported that the company would increase its capital expenditure by over 60 percent through fiscal 2016.
* Shanghai-based Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN), China’s biggest budget hotel operator, is maintaining its forecast of 20 percent revenue growth in 2012.
Economic Calendar for Friday, June 29, 2012:
08:30 A.M. ET: Personal Income (MoM) (May)
08:30 A.M. ET: Personal Spending (May)
08:30 A.M. ET: Core Personal Consumption Expenditure – Price Index (MoM) (May)
08:30 A.M. ET: Core Personal Consumption Expenditure – Prices Index (YoY) (May)
08:30 A.M. ET: Personal Consumption Expenditures – Price Index (MoM) (May)
08:30 A.M. ET: Personal Consumption Expenditure – Price Index (YoY) (May)
08:30 A.M. ET: New York Federal Reserve Bank President William Dudley speaks.
09:05 A.M. ET: St. Louis Federal Reserve Bank President James Bullard speaks.
09:45 A.M. ET: Chicago Purchasing Managers’ Index (June)
09:55 A.M. ET: Reuters/Michigan Consumer Sentiment Index (June)