U.S. Stock Futures Advance as G-7 Ministers Meeting Lack Focus

Nichole Harper
10 May, 2013
New York City

U.S. stocks are trending higher in early trading on the back of sustained weekly rally in European and Asian markets. The Yen dropped below 100-mark and extended year-to-date advance in Nikkei above 40%.

[R]8:45 AM New York – U.S. stocks are trending higher in early trading on the back of sustained weekly rally in European and Asian markets. The Yen dropped below 100-mark and extended year-to-date advance in Nikkei above 40%.[/R]

Market index futures in New York traded higher on the back of a surge in markets in Asia and Europe after the yen crossed the psychologically important 100-mark.

Market indexes in Europe gained more than 0.5% today and for the week rose every day and indexes in Tokyo and Australia flirted with new 5-year highs.

G-7 finance ministers are set to begin a two-day meeting in London today and Vietnam and Sri Lanka lowered their policy rates today.

S&P 500 index has rebounded for the fifth year in a row and reached a new high after dropping to a 12-year low in 2009.

Fed Chairman Ben S. Bernanke is scheduled to deliver a speech at 9:30 a.m. New York time at the annual conference on bank structure and competition organized by Chicago Fed.

European Markets

Markets across Europe traded higher for the fifth day in a row this week after German exports increased more than expected.

In London trading, FTSE 100 index increased 0.6% and in Frankfurt trading DAX index gained 0.7%. In Paris, CAC 30 index added 0.69%.

German exports adjusted for working days and season changes, increased 0.5% in March from a decline of 1.2% in February, the Federal Statistics Office in Wiesbaden said.

Imports increased 1.5% in the month from February.

A group of 400 investors plan to seek about 200 million euros in compensation from the Bank of Spain and other supervisory authorities in Spain for losses linked to Bankia share collapse from its offering price of 3.75 euros to worthless.

Gerb party controlled by former Prime Minister Boyko Borrissov is slightly ahead of its nearest rival Socialist Party in Bulgarian election that is scheduled on May 12, according to two independent surveys.

Borrissov, the former bodyguard and prime minister, resigned after street protests in February after the poorest member of the European Union failed to improve living standard under his leadership.

Bulgaria has the lowest debt-to-GDP ratio of 18.5% in the European Union has labored under austerity measures since 1997 and the economy is expected to grow 0.9% in 2013.

Asian Markets

Market indexes and stocks in Tokyo surged for the third day this week after the yen dropped below 101 and investors cheered Nikon’s earnings outlook.

Corporate Japan has been cautious and held its earnings outlook based on the dollar-yen rate at the level of 90, far lower than the current trend in the currency trading.

However, investors have been optimistic about corporate earnings outlook and are factoring the dollar-yen level closer to 100-level.

Also, the latest current account data also dragged the yen lower to 101.40 against a dollar.

The Nikkei 225 Stock Average climbed 416.06 or 2.9% to 14,607.54 and the broader Topix Index jumped 28.77 or 2.4% to 1,210.60.

In Mumbai trading, the Sensex index increased 0.7% and in Hong Kong the Hang Seng index advanced 0.5%.

Stocks in Review

Air Lease Corp ((AL)) dropped 8% after reporting first quarter revenue of $192 million, lower than expected by analysts.

ArcelorMittal ((MT)) advanced 6% after the largest steel maker in Europe reported operating earnings declined to $1.57 billion in March quarter compared to $2.12 billion in the period a year ago.

Dell ((DELL)) was in focus after hostile investor Carl Icahn controlled company is partnership with Seacoast plan to conduct a proxy fight for the pc maker.

Nikon Corporation soared 318 yen or 14.6% to 2,500 yen after the camera maker said profit in the fourth quarter declined 19.3% and expects digital compact camera sales to drop in this fiscal year.

Camera maker lowered its sales expectation of digital compacts in this year to 14 million, decline of 18% from 17.14 million last year.

Nvidia Corp ((NVDA)) increased 1% in pre-market trading after the graphic processor reported net income increased $77.9 million or 13 cents a share and sales increased 3.2% to $954.7 million.

Priceline.com ((PCLN)) declined as much as 2.1% in pre-market New York trading after the online travel booking company estimated current year earnings and revenues below expectations.

Sotheby’s ((BID)) is expected to be in focus after reporting a loss of 33 cents a share in the March quarter, wider than expected by analysts.