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Minyanville's Before The Bell: Global Bulls Are Out, U.S. Stock Futures Down


Global Markets are up, but U.S. stock futures are down. Read what's going on around the globe!

Global equity indexes advanced this morning. U.S. stock futures are not following suit, however. As of 7:20 AM EST, S&P futures are trading lower by 3.40 points at 1480, and Nasdaq futures are lower by 5.0 points at 1964.

In Asia, the Nikkei ended its day with a gain of 0.32%. Although major news in the region included Japanese Prime Minister Shinzo Abe reshuffling his cabinet, Bloomberg reports the announcement actually had very little impact on the market. The focus was more on the continued volatility of the Yen which traded as low as 116.75 vs. the dollar. Please read Professor Succo's The Carry Trade for an important understanding of the effects of foreign currency.

The Shanghai Composite continued to extend its gains, adding 0.83% even as another "subprime cockaroach" appeared. China Construction Bank, in which Bank of America (BAC) holds an 8.52% stake, reported a $1.06 bln exposure to U.S. subprime securities. The news was partially offset by the company reporting positive first half results with net profit rising 47% y/y. (From WSJ)

Hong Kong's Hang Seng performed the best out of Asian markets as sentiment was boosted on the idea that strong fund inflows from China would boost valuations of mainland-related issues. The Hang Seng closed up 2.9%.

In other markets, India's Sensex finished up 2.89% and Taiwan closed up 0.32%.

European markets are trading very thin this morning as London's FTSE is closed due to a holiday in the UK. The CAC finished up 0.79%, and the DAX gained 0.07%.

Germany's stocks proved to be resilient as news broke over the weekend of state-owned Landesbank agreed to buy troubled state lender Sachsen for approximately 250 mln euros (From WSJ).

In the U.S., more details of Home Depot's (HD) transaction may be what is weighing down on the markets this morning. Bloomberg reports Home Depot settled on the $8.5 bln figure last week, cutting the sale of its wholesale supply unit by roughly 18%. The sale was threatened by continued turmoil in the credit markets. Please Toddo's What's Happening and The Credit Card for more insight into current market conditions.

Crocs (CROX) will make further expansions by selling apparel for men and children in addition to their plastic clogs. (From WSJ)

U.S. Steel (X) said it will acquire Canadian steelmaker Stelco for $1.1 bln in cash. The deal calls for U.S. Steel to purchase all outstanding shares for $36.59 while retiring Stelco's $760 mln in debt.

For Monday's radar, Existing Home sales data will be released at 10:00 AM EST. Please click here for the full trading radar.

As always, please click on our Stocks to Watch for more company specific ideas. In addition, continue to check in on our News and Views page for continuously updated information you need to know. Good luck and Good trading Minyans.
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