Two Ways: All Smiles in Asia
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US stock futures are higher this morning, boosted in part by sentiment in Asia. Word that China's economy may be leading the region out of the economic downturn caused Hong Kong's Hang Seng Index to rally 5.5% last night, moving above 16,000 points for the first time this year.
According to Reuters, China's Purchasing Manager's Index -- a gauge of manufacturing activity -- rose for a fifth consecutive month in April to 53.5%, an increase of 1.1% over the previous month. Elsewhere, Taiwan's stock exchange jumped 5.6% on hopes that improved relations with China would spur further investment. India's Sensex also closed higher, by 6.4%, with increased interest in metal, IT and banking stocks resulting in a close above 12,000 for the first time in 7 months.
From the Bull Pen: Bulls can still look to agriculture plays like Terra Industries (TRA). The stock seems to have held support at $26 and is approaching $30 for the third time around (triple tops typically don't hold). A sell stop can be set below $26.
From the Bear Cave: Bears can keep an eye on UPS (UPS). Watch if the stock is making a bearish head-and-shoulders pattern on the daily chart. Closing below $51 could confirm this signal. Those testing the downside can keep a buy stop 2% above entry.
Quick Check Around the World
Asian trading closed with the Hang Seng 5.54%, Nikkei 1.69%, India 6.41%, Shanghai 3.32% and Taiwan 5.64%.
Glancing towards Europe, we see the CAC 0.92%, DAX 1.69%, ATX 3.12%,3
As of 8:15 AM EST, S&P Futures are trading +4 to 880.00, and Nasdaq futures are +10 to 1408.00.
A Look at Commodities
Over in commodities, crude oil is trading -0.47 to 52.73 while gold is -3.5 at 891.70 this morning. Silver is +0.850 to 1258.5 and copper +5.35 to 215.50.
The dollar index is +0.3100 to 85.0150.
On the Radar
10:00 Construction Spending -1.4%
10:00 Pending Home Sales 0.0%
12:30 Tom Hoening Speaks
02:00 Jeffrey Lacker Speaks
Click here for the full trading radar.
Good luck today!
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