Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: German Confidence Rises; US Trade Deficit Grows


Leaders of both parties in Washington are keeping their progress on the fiscal cliff debate under wraps for now.

MINYANVILLE ORIGINAL Before the opening bell today, stock futures are signaling gains as German economic sentiment surged.

Germany's ZEW survey showed that the country's financial experts are much more bullish than they were last month. The leading indicator of business conditions unexpectedly rose to 6.9 this month from -15.7 last month. Outlook on current conditions rose to 5.7 from 5.4. ZEW attributes this rise to pre-Christmas optimism, but they feel that it shows that Germany is unlikely to face a recession, unless the greater eurozone crisis deepens further.

The US trade deficit widened to $42.2 billion in October from a downwardly revised $40.3 billion in September, falling just shy of estimates. Later today, the government will likely show that wholesale inventories rose 0.4% in October after a steep 1.1% rise in September.

Dow (INDEXDJX:.DJI) futures gained 0.25% to 13,220 before the opening bell. Futures contracts on the S&P 500 (INDEXSP:.INX) were up 0.25% to 1,423.70 and Nasdaq (INDEXNASDAQ:.IXIC) futures rose 0.27% to 2,657.75.

Copper production, a leading indicator of manufacturing activity, rose 2.1% in China last month. New yuan loans in the country rose to 522.9 billion, falling short of estimates.

The Treasury sold off $7.6 billion worth of shares in American International Group (NYSE:AIG). The combined profit that the Federal Reserve and Treasury made from bailing out the insurance giant totals $22.7 billion.

Apple (NASDAQ:AAPL) shares advanced 0.8% this morning after Morgan Stanley (NYSE:MS) reiterated its 'overweight' recommendation on the stock on expectations that the electronics giant will begin marketing televisions.

The Fed will start its two-day policy meeting today. Economists are expecting that in addition to quantitative easing, the Fed will begin another program of buying Treasuries to replace Operation Twist, which is due to expire at the end of the year.

The Wall Street Journal reports that Republicans and the White House have become more serious about coming to an agreement that will avert the fiscal cliff of spending cuts and tax increases. The paper says that one positive sign is that the two sides have agreed to a public moratorium on making comments about the talks.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos