Benzinga | Dec 20, 2012 12:59AM ET
U.S. equity futures rose slightly in pre-market trading as Congressional leaders appear closer to a deal to at least manage the fiscal cliff and mute some of the effects of the tax hikes and spending cuts. Now, it is true that many of the measures will not take effect immediately and leaders would have time should no deal be reached by January 1, but the faster a deal is reached, the better.
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In other news around the markets:
Asian shares were mostly higher overnight led by strength in Japan on hopes of a new round of economic stimulus. The Japanese Nikkei rose 2.39 percent while the Shanghai Composite Index was flat and the Hang Seng Index rose 0.57 percent. In addition, the Korean Kospi rose 0.51 percent and Australian shares rose 0.49 percent.
European Markets
European shares were also higher overnight on hopes of a Fiscal Cliff deal and on the German confidence survey. The Spanish Ibex Index jumped 1.5 percent and the Italian MIB Index rose 0.78 percent in early trade. Also, the German DAX rose 0.3 percent and the French CAC rose 0.51 percent while U.K. shares rose 0.56 percent.
Commodities
Commodities were mostly higher in overnight trade, boosted by global growth hopes. WTI Crude futures rose 0.38 percent to $88.26 per barrel and Brent Crude futures rose 0.56 percent to $109.45 per barrel. Copper futures fell 0.14 percent as Chinese shares lagged despite the strength in Australian miners overnight. Gold was higher and silver futures rose 0.26 percent to $31.75 per ounce.
Currencies
Currency markets were in clear risk-on mode overnight as investors sold the dollar and bought other currencies. The EUR/USD was higher at 1.3277 and the dollar rose against the yen to 84.40. Overall, the Dollar Index fell 0.3 percent overnight on weakness against the euro, the yen, the pound, the Swiss franc, and the Swedish krone. The British pound was stronger overnight following the release of the Bank of England's Monetary Policy Committee minutes showed that authorities were in large agreement to keep rates on hold and not increase its asset purchase program.
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 and Housing Starts data are due out, followed by the EIA Petroleum Status Report. In addition, the Treasury is expected to auction 7-year notes. Overnight, the Bank of Japan interest rate decision is expected as well as German inflation data.
By Matthew Kanterman
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