Friday's Market Primer

U.S. equity futures traded lower on renewed fears that Portugal could be the first nation to leave the eurozone after the recent political crisis has put in doubt the nation's attempts to meet its bailout goals. Meanwhile, key bank earnings before the bell should set the tone for U.S. trading.

Top News
In other news around the markets:

• Portugal's government requested to delay its latest bailout review in a sign that it has not made the required reforms to receive the next payment. Should the nation fail to do so, it could go bankrupt and leave the eurozone.
• European Central Bank Chief Economist Peter Praet, formerly of the Bank of Belgium, was quoted overnight in German paper Handlesblatt as saying that interest rates in the eurozone will remain at current levels or lower as long as inflation remains moderate. This subtle hint is further clarity to the guidance President Mario Draghi gave last week in the that the market can now expect rate movements to be tied to medium-term inflation expectations.
• S&P raised its outlook on Ireland overnight to positive from stable in a sign that the ratings agency could upgrade the rating of the bailed out nation from its current BBB+ to an A rating.
• S&P 500 futures fell 1.1 points to 1,669.00.
• The EUR/USD was lower at 1.3045.
• Spanish 10-year government bond yields fell 2 basis points to 4.8 percent.
• Italian 10-year government bond yields fell 2 basis points to 4.44 percent.
• Gold fell 0.39 percent to $1,276.25 per ounce.

Asian shares were mixed overnight as Chinese and Hong Kong shares lagged as Chinese Finance Minister Lou said that growth would come in closer to 7 percent this year but would avoid a hard landing. The Japanese Nikkei 225 Index rose 0.23 percent and the Topix Index gained 0.6 percent. In Hong Kong, the Hang Seng Index dropped 0.75 percent while the Shanghai Composite Index slipped 1.62 percent. Also, the Korean Kospi fell 0.41 percent and Australian shares rose 0.16 percent.

European Markets
European shares were mixed as peripheral indexes fell on Portuguese fears. The Spanish Ibex Index declined 0.93 percent and the Italian FTSE MIB Index fell 0.06 percent. Meanwhile, the German DAX rose 0.81 percent and the French CAC 40 Index rose 0.35 percent while U.K. shares gained 0.43 percent.

Commodities
Commodities were lower overnight as the dollar retraced some losses. WTI Crude futures fell 0.13 percent to $104.77 and Brent Crude futures declined 0.09 percent to $107.63 per barrel. Copper futures rose 1.89 percent to $314.95 per pound. Gold was lower and silver futures declined 0.93 percent to $19.77 per ounce.

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Currencies
Currency markets were on the move as the dollar strengthened while the euro weakened on Portugal fears. The EUR/USD was lower at 1.3045 and the dollar rose against the yen to 99.02. Overall, the Dollar Index rose 0.26 percent on strength against the euro, the pound, the yen, and the Swiss franc.

Earnings Reported Yesterday

• Key companies that reported earnings Thursday include: Commerce Bancshares (INFY ) is expected to report first quarter EPS of $0.70 vs. $0.73 on revenue of $1.93 billion vs. $1.75 billion a year ago.

On the economics calendar Friday, the Reuters/University of Michigan Consumer Sentiment Index is expected to be released and Fed members Bullard, Plosser, and Williams are set to speak.

BY Matthew Kanterman