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Minyanville's Before The Bell: Investors Gain Confidence, Futures Up


Central banks continue to add funds to the markets and investors gain confidence causing futures to be up.

Bulls around the globe are back again this morning pushing up U.S. stock futures. As of 7:20 AM EST, S&P futures are trading +12.10 at 1480 while Nasdaq futures are trading +11.5 points at 1956.5

Asian markets continued their rally. Australia's ASX 200 rose 2.6%, Korea's Kospi rose 2.3%, Japan's Nikkei rose 2.6%, Hong Kong's Hang Seng finished up 2.8% and the Shanghai Composite crossed the 5000 mark to finish up 1.1%.

The Bank of Japan kept its overnight loan rate unchanged at 50 basis points. BOJ Governor Fukui added warnings of more painful market adjustments to come and said keeping interest rates too low was likely to spur excessive risk-taking signaling the BOJ would likely raise rates in October.

In a sign the credit crunch is still continuing, New Zealand's central bank said it will accept bank bills as collateral in its overnight repurchase facility. The ECB also continued to add liquidity to the markets, this time with a 40 bln euro injection of three-month funds. The offering was met with strong demand as 146 banks made bids. Please read Toddo's The Credit Card for the larger implications of the moves by the central around the world.

European markets are holding up strong. As of 7:30 AM EST, the CAC is up +0.96%, DAX up +0.96% as well, and the FTSE is up +0.94%.

The price action around the globe shows investors may be gaining more confidence in the credit markets. Adding to the sentiment was news that came out late yesterday that Bank of America (BAC) made a $2 bln investment in Countrywide Financial (CFC).

Goldman Sachs (GS) is also giving investors confidence as Bloomberg reports its Global Equity Opportunities Fund rose 12%. The fund made headlines weeks ago getting a $3bln injection after losing almost 30%.

Kohlberg Kravis Roberts said that it is continuing with its $1.25 bln IPO despite current market turmoil. For more company-specific ideas, please click on our Stocks to Watch

It is another light day on the radar. At 8:30 AM EST, Initial Claims data is set to be released. Please click here for the rest of the Trading Radar. In addition, as the market is still volatile, don't be fooled. Have a look at Professor Katsenelson's Navigating This Tricky Market and Professor Tatro's When Is It Time To Jump Ship?

Good Luck Minyans! Keep checking back with us on our News and Views page for continuously updated information you need to know!
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.

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