Benzinga | May 02, 2013 08:35AM ET
U.S. equity futures rose slightly in early pre-market trade following the FOMC saying that it is prepared to increase or decrease asset purchases depending on the state of the economy. Today, the European Central Bank is set to release its interest rate decision and is expected to cut rates by 25 basis points to 0.5 percent.
Top News
In other news around the markets:
Asian shares were lower overnight following the weaker than expected Chinese manufacturing data as well as reports from the Chinese Securities Journal saying that inflation could increase in the second quarter (leading to tightening of monetary policy). Also, unconfirmed rumors were circulating that China will downgrade its official growth forecast to closer to 7 percent growth. The Japanese Nikkei Index fell 0.76 percent and the Shanghai Composite Index fell 0.17 percent and the Hang Seng Index dropped 0.3 percent. Also, the Korean Kospi lost 0.34 percent while Australian shares fell 0.7 percent.
European Markets
European shares were mixed ahead of the ECB decision despite the better than expected manufacturing data. The Spanish Ibex Index rose 0.39 percent while the Italian FTSE MIB Index fell 0.35 percent. Meanwhile, the German DAX rose 0.15 percent while the French CAC 40 fell 0.25 percent and U.K. shares slipped 0.28 percent.
Commodities
Commodities were mostly higher overnight following hopes that the Fed will not halt purchases as soon as originally thought and could even increase the rate of purchases. WTI Crude futures rose 0.15 percent to $91.17 per barrel and Brent Crude futures rose 0.46 percent to $100.41 per barrel. Copper futures bounced from new 2013 lows by 0.97 percent to $311.00 per pound. Gold was higher and silver futures rose 0.95 percent to $23.57 per ounce.
Currencies
Currency markets were rather quiet overnight except for the Australian dollar which saw massive weakness against many trading partners. The EUR/USD was lower at 1.3166 and the dollar fell against the yen to 97.27. Overall, the Dollar Index rose 0.26 percent on strength against the euro and the Swiss franc. Notably, the Australian dollar lost 0.54 percent against the greenback to 1.0223 and fell 0.65 percent against the yen while losing 0.35 percent against the euro.
Earnings Reported Yesterday
Key companies that reported earnings Wednesday include:
Stocks moving in the pre-market included:
Notable companies expected to report earnings Thursday include:
On the economics calendar Thursday, the European Central Bank decision is due out at 7:45 am eastern. Also, the Challenger Job Cut Report is expected as well as initial jobless claims, international trade data, and productivity and costs data. Overnight, the Chinese Non-Manufacturing PMI is set to be released as well as the British Services PMI.
BY Matthew Kanterman
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