Futures on major U.S. stock indices edged lower on Friday after the stocks gained ground Thursday, driven by higher-than-expected drop in weekly jobless claims and optimistic views from European Central Bank and the International Monetary Fund on the economy.
After rising for the last three consecutive sessions, futures on the S&P 500 are down 0.07 percent, futures on the Dow Jones Industrial Average are down 0.16 percent and Nasdaq100 futures are down 0.14 percent.
Before the Market opens:
• Gains from banking and mining stocks due to well-received earnings news and broker upgrades helped the European shares to raise for the fourth straight session on Friday.
• Norwegian bank reported a better-than-expected $3.26 billion net profit for the second quarter due to sharp decline in write-downs on bad loans.
• Citigroup upgraded copper miner Antofagasta’s grading to buy from hold and Goldman Sachs restated that Antofagasta and Anglo American were the broker's top mining picks.
• A strong industrial output figure in the euro zone’s three main economies in May indicates to a consolidating economic pick-up and firm second quarter growth. French and Italy’s May industrial output rose more than expected after surge in German’s output yesterday. Industrial productions of France and Italy rose 1.7 percent and 1 percent, respectively.
• European Central Bank President Jean-Claude Trichet was optimistic about consolidation measures to help turn the current upturn into sustained growth and the stress tests will help confidence in European banks. He also dismissed warnings that cuts planned by euro zone governments will hit growth.
• On economic front, UK producer prices declined 0.3 percent in June due to price falls in petroleum, manufactured and food products.
• Britain's goods trade deficit with the rest of the world was wider than expected in May. The £8.1 billion in May was the biggest total goods and services trade gap since July 2008 and biggest non-EU goods trade gap since January.
• European markets are currently trading higher with FTSE 100 trading up by 5.49 points, DAX30 trading up by 25.52 points and CAC 40 trading up by 14.17 points.
• The euro is currently trading slightly lower at 1.2678 against dollar and the dollar gained 88.595 against yen.
• Crude oil futures gained 0.30 percent as equity markets climbed to their highest in more than a week. In precious metals sector, both gold and silver gained 0.05 percent and 0.02 percent, respectively.
During Asian Market Hours:
• More than expected fall in US weekly jobless claims and surprise interest rate hike by South Korea boosted the Asian stock markets to end to a two-week high. Nikkei gained 0.52 percent, Hong Kong’s Hang Seng index advanced 1.64 percent and China’s Shanghai Composite surged 2.31 percent.
• Seoul shares gained 1.43 percent and won appreciated to a two-week high after the Bank of Korea raised its benchmark interest rate for the first time since the global crisis indicating that Europe’s debt crisis won’t spoil economic growth.
