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The Early Look
Here’s a brief look at the pre-market action for July 2, 2012 @ 07:40 AM
Good morning. Let's keep in mind first that this week has a Holiday break on Wednesday and historically the days before such a holiday are usually lighter in volume and tend to be fairly positive for the markets.
Also the ECB rate decision is due July 5th and there is some optimism they will take accommodative action.
Asian stocks were mixed to up, with about a +0.3% gain, although Japan was flat and Hong Kong closed.
Asia was up, partially as a result of the U.S. gains Friday, but also a "less bad" PMI report from China at 50.2 for June, above estimates but below May's 50.4. There is still some question on China's official reporting as HSBC has the measure at 48.2 for June.
Japan had a better than expected manufacturing sentiment reading, which apparently did not help markets that much, as last week's gains were digested.
The UK had a much better than expected PMI reading at 48.6, although still under the 50 mark,
European stocks are building on Friday's gains, up +0.9% as we write this, despite a weak final June PMI reading:
"June PMI data signaled that the downturn in the Eurozone manufacturing sector extended to an eleventh successive month. Production and new orders suffered further severe contractions, leading to the steepest job losses since January 2010. At 45.1 in June, unchanged from the previous month, the final Markit Eurozone Manufacturing PMI ® was up slightly from its earlier flash estimate of 44.8. However, the rate of decline signaled was identical to May, when operating conditions deteriorated at the fastest pace for almost three years."
Final May employment figures were out for the Euro zone and showed no improvement at 11.1% unemployment.
U.S. futures are trading modestly higher after a fairly quiet evening and pre-market. The S&P is up 2-4 points and Dow 10-20.
U.S. data includes a PMI reading a 9:00 am edt, ISM mfg. at 10:00 am, and also Construction spending at 10:00 am.
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...
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Major Foreign Markets:
- Australia: +0.89%
- Shanghai: +0.03%
- Hong Kong: Closed
- Japan: -0.04%
- France: +1.59%
- Germany: +1.33%
- Italy: +0.82%
- Spain: +0.32%
- London: +0.73%
- Australia: +0.89%
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Crude Oil Futures: -$1.41 to $83.55
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Gold: -$15.30 to $1588.90
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Dollar: higher against the yen, euro, and pound
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10-Year Bond Yield: Currently trading at 1.651%
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Stock Futures Ahead of Open in U.S. (relative to fair value):
- S&P 500: +2.24
- Dow Jones Industrial Average: +4
- NASDAQ Composite: +0.58
- S&P 500: +2.24
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