MSN: Futures slip on earnings, ahead of Fed meeting
U.S. equity futures slipped in early Tuesday trade following mixed earnings reports Monday and ahead of the two-day Federal Reserve policy that begins Tuesday with new Fed Presidents. The new Federal Open Market Committee, which will release its policy statement on Wednesday, has a slightly more dovish tilt.
In other news, Spanish retail sales in December fell 10.7% from the same period a year ago, worse than the prior reading of -7.8% and below forecasts of a decline of 8.9%.
China's top economic think tank, the Chinese Academy of Social Sciences, lifted its 2013 growth forecast to 8.4% from 8.2% noting that first half growth should be stronger than the second half.
Moody's downgraded six Canadian banks Monday, including Bank of Montreal (BMO 0.00%) and Toronto Dominion (TD 0.00%), citing a deteriorating housing market and high consumer debt levels.
Asian markets
Asian shares were mixed overnight led higher by Japanese and Chinese shares. The Japanese Nikkei Index rose 0.39% and the Shanghai Composite Index rose 0.53% while the Hang Seng Index declined 0.07%. Also, the Korean Kospi rose 0.84% and Australian shares rose 1.11%.
European markets
European shares were mostly lower in early trade, albeit slightly lower, following the weak Spanish retail data. The Spanish Ibex Index fell 0.25% and the Italian MIB Index declined 0.22%. Meanwhile, the German DAX declined 0.1% and the French CAC fell 0.26% while U.K. shares rose 0.14%.
Commodities
Commodities were mixed overnight with energy futures lagging and metal futures leading. WTI crude futures were flat at $96.44 per barrel and Brent crude futures declined 0.27% to $113.17 per barrel. Copper futures were flat at $366.15 per pound despite strength in Australian and Chinese shares. Gold was higher and silver futures rose 0.81% to $31.03 per ounce.
Currencies
Currency markets were mixed overnight with yen and euro crosses indicating a risk-off feel while the pound recouped some of its heavy losses from Monday and the Australian dollar rallied. The EUR/USD was lower at 1.3442, the GBP/USD was higher at 1.5724 after declining strongly on Monday, and the dollar fell against the yen to 90.50. Overall, the Dollar Index rose 0.02% on strength against the euro, the Swiss franc, and the Swedish krone. Also, the AUD/USD was higher at 1.0449, a gain of 0.3%.
