Benzinga | Dec 06, 2012 01:01AM ET
U.S. equity futures rose in early Wednesday trading as China opened up financial markets to further investment from insurers and increased urbanization plans. The moves serve as ways to support the banking sector in the country, as insurers can now use bank securities to manage risks.
Top News
In other news around the markets:
Asian shares were stronger overnight led by Chinese stocks following the government shift on insurance investments and increased investment in urbanization. The Japanese Nikkei rose 0.39 percent while the Shanghai Composite Index rose 2.87 percent and the Hang Seng Index rose 2.16 percent in Hong Kong trading. Also, the Korean Kospi gained 0.61 percent and Australian shares rose 0.37 percent.
European Markets
European shares rose in early trade as the service sector contracted less than expected in November. The Spanish Ibex Index rose 0.18 percent and the Italian MIB Index rose 0.6 percent despite the uptick in bond yields. Meanwhile, the German DAX rose 0.25 percent and the French CAC gained 0.38 percent while U.K. shares rose 0.28 percent.
Commodities
Commodities were higher in overnight trade following the strength in China and the rebound in European data. WTI Crude futures rose 0.31 percent to $88.77 per barrel and Brent Crude futures rose 0.31 percent to $110.18 per barrel. Copper futures jumped 0.23 percent to $366.40 per pound following the strength in Chinese markets. Gold was higher and silver futures rose 0.92 percent to $33.11 per ounce..
Currencies
Currency markets showed a short yen bias in overnight trade as the Japanese currency weakened against most major currencies. The EUR/USD was slightly lower at 1.3082 and the dollar rose against the yen to 82.20. Overall, the Dollar Index rose 0.15 percent to 79.76 on strength against the yen, the Swiss franc, and the Swedish krone. In addition, the Aussie dollar was moderately stronger in overnight trade, especially against the greenback and the yen.
Pre-Market Movers
Stocks moving in the pre-market included:
Notable companies expected to report earnings Wednesday include:
On the economics calendar Wednesday, MBA Purchase Applications, the ADP Employment Report and Productivity and Costs are due out. After markets open, the ISM Non-Manufacturing Index is expected followed by the EIA Petroleum Status Report.
By Matthew Kanterman
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