Equity markets dropped at the final hour yesterday when news reports indicated that China was reluctant to buy European debt. This morning the reverse has happened: global equities are up and stock futures are sharply higher after China called Europe a key investment market.
Ninety minutes before the opening bell, Dow futures are up 184 points to 10,105 and S&P 500 futures are 24.80 points higher at 1,086.00.
WTI crude oil is up $1.83 to $73.34 per barrel, and Spot Gold is up $1.50 to $1,213.30.
Stocks in China, Japan, and Hong Kong are all up more than 1%, while London’s FTSE 100 is up 1.86% and France’s CAC-40 is up 2.10%.
Key Events Today:
8:30 ― Revised data is anticipated to kick up GDP from 3.2% to 3.5% in the first quarter, following a much-stronger 5.6% leap in Q4 2009. The upward improvement is expected to come from private consumption and a narrower trade balance. With more recent developments dominating investor decisions, one can probably assume that any minor revisions are unlikely to have much sway in the markets.
8:30 ― Initial Jobless Claims surprised economists by jumping to a five-week high of 471k in the week ending May 22. More attention could be placed on the May’s final survey, as a return to the 450k level would show the jump was merely a blip, while another high number could change assumptions about near-term labor data.
“We interpreted the rise as statistical noise and do not think firing activity suddenly increased in mid-May,” said economists at Nomura. “We believe the four-week moving average of claims (454k) remains at a level consistent with private sector job growth.”
2:30 ― James Bullard, president of the St. Louis Fed, speaks on central bank policy challenges to the Swedbank Economic Outlook Conference in Stockholm.
Treasury Auctions:
- 1:00 ― 7-Year Notes
