BLBG:U.S. Stock-Index Futures Advance Before Goldman Sachs Releases Results
U.S. stock-index futures gained, indicating the Dow Jones Industrial Average will extend a five- month high, as investors awaited earnings from Goldman Sachs Group Inc. (GS)
Goldman Sachs, the fifth-biggest U.S. bank by assets, rose 1.4 percent in German trading ahead of its fourth-quarter results. Yahoo! Inc. (YHOO) climbed 3.8 percent after saying Jerry Yang, who started the company in 1995 with David Filo, is stepping down, stoking speculation that the Web portal may sell Asian assets.
Futures on the Standard & Poor’s 500 Index expiring in March increased 0.1 percent to 1,290.7 at 9:52 a.m. in London, having earlier fallen 0.2 percent. Dow futures added 12 points, or 0.1 percent, to 12,432.
The World Bank cut its global growth forecast by the most in three years today, saying that a recession in the euro region threatens to exacerbate a slowdown in emerging markets such as India and Mexico.
The world economy will grow 2.5 percent this year, down from a June estimate of 3.6 percent, the Washington-based World Bank said. The euro area may contract 0.3 percent, compared with a previous estimate of a 1.8 percent gain. The U.S. growth outlook was cut to 2.2 percent from 2.9 percent.
A report today may show U.S. industrial production rebounded in December after falling for the first time in seven months in November, according to a Bloomberg survey of economists.
Greek Debt Talks
Greece is close to a deal with private creditors that would give them cash and securities with a market value of about 32 cents per euro of government debt, Bruce Richards, who is on the creditors’ committee and chief executive officer for Marathon Asset Management LP, said yesterday.
Portugal will test the markets’ appetite for debt today when the country auctions the longest maturity bills since it sought rescue funds last year from the European Union and International Monetary Fund.
Investors will be asked to bid for 11-month Portuguese bills as 10-year yields hover at record highs. The rise in rates followed the Jan. 13 decision by S&P to cut Portugal’s credit rating to non-investment grade, or junk, meaning the debt can no longer be held by some index-tracking funds.
To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net.
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
