The Early Look: Futures Higher on Chinese Rate Cut

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The Early Look

Here’s a brief look at the pre-market action for Jun 7, 2012 @ 07:12:25 AM

Good morning. This could be another morning where whatever we post will be long out of date in a few minutes.

Breaking news in last few minutes on the BOE holding interest rates and not announcing any new stimulus, BUT China announces an interest rate cut which immediately gave a pop to U.S. futures and European markets.

Overnight Asian markets generally followed yesterday's U.S. and European rally up, with the region up about 1.2%.

European markets were fairly quiet to modestly up prior to the China announcement and now solidly in the green, up over 1.0%.

A Spanish bond auction was successfully bid although rates higher.

The news on Euro area progress and the machinations of the UK, Merkel and Draghi far too confusing to even get into here but suffice to say Europe still talking about tentative solutions but no new solid plans.

U.S. futures improved off the China news and now the S&P trading up 5-9 points and the Dow up 40-60.

Last night Vice Chair Yellen had some dovish remarks. Bernanke speaking on the hill this morning. Jobless claims at 8:30 am edt.

Good Trading!
David W. (aka The Underground Trader)

Pre-Game Indicators

Here are the Pre-Market indicators we review each morning before the opening bell...

• Major Foreign Markets:
  • Australia: +1.27%
    
  • Shanghai: -0.71%
    
  • Hong Kong: +0.85%
    
  • Japan: +1.24%
    
  • France: +1.13%
    
  • Germany: +1.55%
    
  • Italy: +1.06%
    
  • Spain: +0.94%
    
  • London: +1.56%
  
  
• Crude Oil Futures: +$1.23 to $86.25
  
• Gold: -$9.20 to $1625.00
  
• Dollar: lower against the yen , euro and pound
  
• 10-Year Bond Yield: Currently trading at 1.668%
  
• Stock Futures Ahead of Open in U.S. (relative to fair value):
  • S&P 500: +10.97
    
  • Dow Jones Industrial Average: +76
    
  • NASDAQ Composite: +19.73

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