Minyanville's Before The Bell: Investors Wait for Banks, Futures Lower
Stock futures are down as investors await data from investment banks. Markets are also awaiting Bernanke's testimony
In Japan, the Nikkei 225 gained 0.20% as Bank of Japan's Governor Toshihiko Fukui said the country's central bank will continue to monitor the effects of subprime issues in the U.S. Fukui also stated the country's policy will be to gradually increase interest rates. (From BTIG)
In China, the Shanghai Composite gained 1.39% even as a survey by the country's central bank said confidence among Chinese bankers fell to record lows. An index tracking the confidence of 2,850 heads of institutions fell to 21 in the quarter from a previous low of 36.7. (From Bloomberg)
Taiwan's TAIEX gained +0.63% as the central bank said it will raise key interest rates by another 12.50 basis points.
In other parts, Australia's central bank drained almost a billion Australian dollars, in a possible sign the worst of the global credit crunch may be over. (From WSJ) Australia's benchmark ASX 200 gained +0.59%. Hong Kong's Hang Seng rose +0.57%, and India's Sensex gained +0.15%.
In Europe, markets are trading lower. The CAC is down -0.94%, the DAX is down -0.43% and the FTSE is down by -0.90%.
Economic data may be adding to the downside pressure. EU July contruction output was flat on a month-over-month basis. EU August retail sales data was also released coming in at +0.6% vs. 0% consensus.
Bank of England's Mervyn King defended the BOE saying it took delicate judgement on the 3 month auction and acted on the Northern Rock crisis for the banking system as a whole. King guaranteed it was the only solution.
In the U.S, the dollar is making headlines falling to record lows vs. the euro. As of this morning the dollar fell to $1.4065 against the euro, the lowest since the European currency's inception in 1999. (From Bloomberg) Please read Professor Shedlock's Minyan Mailbag: Fed Punishing Dollar Holders for more insight into this trend.
Wall street is waiting for earnings from Bear Stearns (BSC). Goldman Sachs (GS) already reported this morning with 3Q $6.13 EPS vs. $4.37 cons on revs $12.33 bln vs. $9.5 bln cons. Get Toddo's thoughts on some financials with his piece, Pop Quiz: Morgan Stanley, Goldman Sachs And Paring Down.
Investors will also be closely monitoring Fed Chairman Bernanke as he testifies before the House at 10 AM EST. Please see below for other events for today and click here for the full weekly trading radar.
8:30 Initial Claims: 319 k prior.
10:00 Leading Indicators: 0.0% cons
12:00 Philadelphia Fed: 2.0 cons
Before: AM, BSC, CCL, CC, CAG, FDX, GS, NSSC, PIR, PRGS, SCHL, SCS, AGE
After: COMS, CHAP, CSC, DMND, DDMX, EGLS, IHS, NKE, NINE, OPTM, ORCL, QTWW, SNX, TEK, THO
For a complete list of company-specific news, please click on our Stocks to Watch. Could be a fun one today. Keep checking back on our News & Views section for continuously updated information you need to know. Good luck and Good Trading!
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