The Early Look: Futures Pointing Lower on Weekend Worries

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The Early Look

Here’s a brief look at the pre-market action for Jun 8, 2012 @ 07:46:40 AM

Good morning. The "sugar high" of Central Bank expectations has certainly worn off this morning and late yesterday, as China was the only major player making a move this week and the ECB and Bernanke disappointing the markets.

Asia was off -1.2% as markets closed for the week and part of that may have been profit-taking going into the weekend, although the over 2% drop in the Nikkei was fairly intense and concerning.

Japan did report revised 1st Qtr. GDP better than expectations but an indicator of "Service Sector Sentiment" was very weak, that is if you believe taxi drivers, hotel workers and restaurant staff (which does seem like a pretty good indicator to us).

Europe also trading lower, off about -0.8% as we write this over going into weekend concerns, higher Spanish yields, a weak Italian data point on Industrial Production and uncertainly over much publicized weekend discussions on Spain.

There has been much discussion about the real meaning of China's rate cut as a raft of China data due out over the weekend and traders wondering if the cut was preemptive in the face of perhaps some disappointing data.

U.S. futures trading down about -0.4% with the S&P bouncing down 3-7 points and the Dow down in a range of 20-60 points.

No major U.S. economic data today.

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: -1.09%
    
  • Shanghai: -0.51%
    
  • Hong Kong: -0.94%
    
  • Japan: -2.09%
    
  • France: -0.79%
    
  • Germany: -0.59%
    
  • Italy: -1.22%
    
  • Spain: +1.06%
    
  • London: -0.67%
  
  
• Crude Oil Futures: -$2.49 to $82.34
  
• Gold: -$8.70 to $1579.30
  
• Dollar: higher against the yen , euro and pound
  
• 10-Year Bond Yield: Currently trading at 1.573%
  
• Stock Futures Ahead of Open in U.S. (relative to fair value):
  • S&P 500: -3.69
    
  • Dow Jones Industrial Average: -30
    
  • NASDAQ Composite: -8.30

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