Global Markets Climbing Higher
05-Dec-12 08:01 ET
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: +3.80. Nasdaq futures vs fair value: +3.00. U.S. equity futures are modestly higher amid quiet pre-market trade.
Overnight, the world equity markets continued moving higher. In China, the HSBC Services PMI of 52.1 came in below the previous month's total. The tepid data once again sparked speculation of imminent easing by the government. As such, the Shanghai Composite responded with a 2.9% advance. Another report suggested China's Insurance Regulatory Committee will raise its limit for insurers to invest in banks and financial institutions. This helped Chinese financials outperform with a gain of 4.7%. The bullish sentiment carried over to Hong Kong's Hang Seng, which advanced 2.2%. In Japan, the Nikkei extended its recent strength and added 0.4%. The index underperformed its peers after rising nearly 10.0% off its recent lows.
European markets are advancing, but the major indices have retreated off their early highs. Eurozone Services PMI readings were mixed as Germany and Spain beat expectations while France and Italy missed. It should be noted that only the United Kingdom reported its PMI slightly above the 50.0 threshold which signifies expansion. As a result of the mixed reports, the aggregate Eurozone Services PMI came in at 46.7, which was one point ahead of expectations. In other data, the region's retail sales proved to be a point of concern as the reported 1.2% month-over-month decline was well below the widely expected downtick of 0.1%. Looking at regional indices, UK's FTSE is adding 0.2% while France's CAC and Germany's DAX are both higher by 0.3%.
In U.S. corporate news, Freeport McMoRan (FCX 35.48, -2.82) is sliding 7.4% after Reuters reported the company may purchase McMoRan Exploration (MMR 12.00, +3.54) and another oil company.
Nokia (NOK 3.54, +0.10) is higher by 2.9% after the smartphone maker signed an agreement with China Mobile to sell its Widows-based Lumia 920 device.
Pandora Media (P 7.78, -1.67) is slumping 17.7% after reporting its earnings. Although the internet radio operator beat on earnings and revenue, the company guided fourth quarter top and bottom lines below consensus. In addition, the company said November 2012 audience has increased 58% year-over-year.
The weekly MBA Mortgage Index pointed to a 4.5% rise in new mortgage applications during the past week. Today's reading follows prior week's decline of 0.9%.
A full slate of economic news will cross the market today. November ADP Employment Change will be released at 8:15 ET. In addition, revised third quarter productivity and unit labor costs will be reported at 8:30 ET. Lastly, October factory orders and November ISM Services will both hit the wires at 10:00 ET.