Asia Mixed; Europe Drops On Global Growth; US Signals Higher Opening
● Asian stock indexes were mixed as China’s Premier Wen Jiabao called for further investment. But movements in the indexes were limited by concerns of global growth.
● The Nikkei fell 0.08 percent; Korea’s KOSPI slid 0.17 percent; the Shanghai Composite advanced 0.51 percent; the Hang Seng rose 0.12 percent; and the S&P/ASX 200 eased 0.04 percent.
● European stock indexes dip as perceptions of weak global growth take its toll on company earnings. Watch for changes in the Vanguard MSCI Europe ETF (NYSEArca: VGK).
● In light of the €100 billion bailout package for Spain, Spanish Prime Minister Rajoy announced a €65 billion austerity package that includes an increase in the sales tax, reduction in unemployment benefits and elimination of a tax rebate for home buyers.
● Portugal might need a relaxation of budget deficit requirements, as its last €2 billion budget cut proposal consisting of reductions in pensions and civil-servant pay was ruled unconstitutional. Portugal’s 10-year bond yield has fallen from a euro-area record of 18.3 percent on Jan. 31, but still remain above 10 percent.
● U.S. stock futures pointed higher before a report that will spell out the Fed decision at its meeting last month to extend stimulus measures.
All commodities news is as of 6:40 a.m. ET.
Gold and Silver Ascended
● Gold advanced 0.58 percent, or $9.07, to $1576.35. Expect gains in the SPDR Gold Shares physical bullion ETF (NYSEArca: GLD).
● Silver rose 0.86 percent, or $0.23, to $27.06. Expect increases in the iShares Silver Trust (NYSEArca: SLV).
WTI and Brent Oil Surged
● The August contract for WTI crude oil advanced 1.13 percent, or $0.95, to $84.86 per barrel.
● The August contract for Brent crude oil jumped 1 percent, or $0.98, to $98.95 per barrel.
● Expect increases in both the United States Oil Fund (NYSEArca: USO) and in the United States Brent Oil Fund (NYSEArca: BNO).
On Tuesday, July 10, 2012, the top ETF in nominal inflows was the SPDR S&P 500 (NYSEArca: SPY), with creations of $697.9 million. The top ETF in nominal outflows was the SPDR Gold Trust (NYSEArca: GLD), with redemptions of $216.7 million.
- The AdvisorShares Global Alpha & Beta ETF (NYSEArca: RRGR) is an actively managed global asset allocation fund that blends single equities and funds in a mix that tries to outperform financial benchmarks, such as the S&P 500 Index and the Barclays Capital Aggregate Bond Index, while mitigating volatility and risk. The fund, which comes with a net expense ratio of 1.40 percent that includes a waiver of 0.32 percent, is diversified across industry sectors and countries in a top-down investment style that first looks at the big economic picture before narrowing its focus to sectors, countries and ultimately individual stocks.
None as of yet today
● MBA Purchase Applications - 7:00 a.m. ET
● International Trade - 8:30 a.m. ET
● Wholesale Trade - 10:00 a.m. ET
● FOMC Minutes - 2:00 p.m. ET
○ Merchandise Trade - 8:30 a.m. ET
○ CPI - 2:00 a.m. ET
○ Bank of Japan Announcement - TBD
○ Labour Force Survey - 9:30 p.m. ET