Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

North American Morning Briefing : Stock Futures Point to Indexes Rebounding

09/13/2021 | 06:09am EDT


Watch For:

Oracle Corp. 1Q earnings.

Opening Call:

Stock futures rose Monday, pointing to major indexes recovering some ground following the S&P 500's worst weekly performance since February.

Stocks are rebounding on investors' optimism that the Federal Reserve and the government will continue offering stimulus measures. That is because U.S. lawmakers are trying to push ahead this month with a proposed $3.5 trillion legislation for additional spending on healthcare, education and climate. But money managers say they are also waiting to assess if fresh data Tuesday shows that inflation remains elevated, and how that may impact the Fed's easy-money policies.

"I do believe that the bulls have a little more ammunition than the bears: fiscal support still remains on tap, activity indicators are strong," said Gregory Perdon, chief investment officer of Arbuthnot Latham. "Risk is still on."

The current level of yields is signaling that bond investors see higher inflation levels as transitory, according to Georgina Taylor, a multiasset fund manager at Invesco. "There's not enough inflationary pressure to really feel a reassessment of nominal growth over the long term," she said.

In Asia, Hong Kong's Hang Seng Index dropped by the close of trading, with technology stocks among notable decliners in the city.

Concerns about tensions between the U.S. and China had dented investor sentiment, said Dickie Wong, executive director of research at Kingston Securities Ltd. in Hong Kong. Over the weekend, The Wall Street Journal reported that the Biden administration is targeting Beijing's widespread use of industrial subsidies in an effort that could lead to new sanctions on Chinese imports and further strain U.S.-China relations.


The dollar rose to a two-week high against a basket of currencies as investors look ahead to the U.S. Federal Reserve's Sept. 22 meeting amid prospects that asset-purchase tapering will begin this year.

UniCredit said the dollar has been helped higher after Philadelphia Fed President Patrick Harker said he favored tapering sooner rather than later.

This week will see a raft of key U.S. data, including CPI inflation, retail sales and industrial production.

Strong data may help the dollar but weaker-than-expected figures should have a bigger impact if they "raise uncertainty about the timing of the Fed's tapering process," UniCredit said.

Bitcoin traded below $45,000, slipping 0.6% from its 5 p.m. ET level on Friday. Last week, it rose above $52,500.


The yield on the benchmark 10-year U.S. Treasury note edged up to 1.344% from 1.340% on Friday.

Morgan Stanley expects the spread between U.S. and German government bond yields to widen, as the policy divergence between the Fed and the European Central Bank increases, said strategists Alina Zaytseva and Lorenzo Testa.

They expect the Fed's September 22 meeting to be one of the catalysts for the move, with 2024 dots revealed for the first time. The 10-year U.S. Treasury-German Bund yield spread is 166 basis points, according to Tradeweb.

At last week's meeting, the ECB said it would shift to a "moderately lower" purchase pace under the Pandemic Emergency Purchase Programme in the coming quarter. ECB purchases will still be higher than at the beginning of the year, however, while the Fed is expected to start tapering asset purchases later this year.

Citigroup expects eurozone government bond yield spreads stable near-term, while vulnerability might emerge for the long-term, strategist Jamie Searle said.

The fact that the ECB's pandemic emergency asset purchases will be lowered only moderately versus the peak in the remainder of the year will provide comfort to intra-eurozone spreads, and so will hopes that the constraints of the regular Asset Purchase Programme might be adjusted, he said.

On the longer-term, "however, there is still likely to be a cliff in asset purchases next spring and the ECB appears to be slowly shifting tactics from capping EMU spreads to instead anchoring core rates, precisely because such an approach is less reliant on asset purchases," Searle said.


Oil rose, with prices extending their gains over the past week. While prices have lacked strong direction over the past week, data showing strong U.S. gasoline demand over the Labor Day weekend gave prices a boost on Friday.

Meanwhile, 49% of U.S. Gulf of Mexico production remains closed after Hurricane Ida, DNB Markets' Helge Andre Martinsen said. Still, Iran's signaling that it is ready to return to nuclear talks could put pressure on prices in the coming weeks. The market is awaiting OPEC's monthly market report, due later Monday.

Gold prices were listless as a stronger dollar dents the safe-haven's appeal. The U.S. dollar index rose 0.2% to 92.80, diminishing appetite for dollar-denominated gold among holders of other currencies.

With gold's price performance lackluster and the Fed expected to soon begin tapering its stimulus measures, speculative investors have been cutting back heavily on their gold exposure, TD Securities said.

Investors "are anticipating higher real rates and less capital to flow into the yellow metal, as the Fed prepares to start tapering its aggressive asset purchasing program," the bank said in a note. "Robust equity market performance also likely persuaded funds to ease up on their gold exposure," TD said.


TransUnion Nears $3.1 Billion Deal for Neustar

TransUnion is nearing a deal to buy information-services company Neustar Inc. for $3.1 billion, according to people familiar with the matter, a move that could help the consumer-credit reporting giant diversify beyond its core business and put data to new uses.

The purchase of closely held Neustar could be finalized by Monday, the people said, assuming the talks don't fall apart at the last minute.


ViacomCBS to Restructure Paramount Pictures

ViacomCBS Inc. is revamping the operations of its Paramount Pictures movie and television production unit as part of a broader shake-up of the management there that will give television veteran David Nevins a larger role, people familiar with the matter said.

Under the new structure, the movie and television arms will be run as separate entities, the people said. Nickelodeon chief Brian Robbins will oversee films while Mr. Nevins, a longtime ViacomCBS television executive, will add oversight of the Paramount television unit.


Kansas City Southern Says Canadian Pacific Bid Superior to Canadian National Deal

Kansas City Southern said a recent takeover offer from Canadian Pacific Railway Ltd. is superior to one it already accepted from Canadian National Railway Co. in the latest twist in a hotly contested battle for the railroad.

As set out in the terms of its existing agreement with Kansas City Southern, Canadian National now has five business days to improve its offer to avoid termination of the deal. It could also choose to walk away-and receive a $700 million breakup fee and reimbursement for a similar fee it previously covered.


China Seeks to Consolidate Crowded Electric-Vehicle Industry

China wants its electric-vehicle industry that supports hundreds of car makers to consolidate and strengthen its business, the country's top auto industry regulator said Monday.

"The number of new-energy vehicles companies is too big, and the industry is full of small players and fragmented," Xiao Yaqing, minister for industry and information technology, said at a news conference on Monday.


Soho China Shares Drop 36% After BlackStone Scraps Offer for Company

Shares of Soho China Ltd. dropped 36% on Monday after Blackstone Group scrapped its 23.66 billion Hong Kong dollar (US$3.04 billion) offer to buy the commercial real estate operator.

The deal fell through as none of the preconditions set for the offer were met, Soho China said Friday. In the offer made in June, the preconditions included clearance and review by China's State Administration for Market Regulation.


Chip Shortage Drives Tech Companies and Car Makers Closer

Cooperation between semiconductor companies and the automotive industry is moving into the fast lane, driven by a chip shortage and a recognition that cars are becoming ever-more digital.

More than a year into the crisis, executives from car and chip makers are establishing closer ties to address the shortage and working together to introduce new products. The shift was on display as executives from such chip companies as Intel Corp., Qualcomm Inc. and Nvidia Corp. flocked to Munich last week for an annual auto show, lured by the promise of selling chips for new car displays, driver-assistance features and other vehicle applications.


Hertz Searches for a New CEO After Bankruptcy

Hertz Global Holdings Inc. is in talks to name a new chief executive officer, as the car-rental company resets after emerging from bankruptcy under new ownership, people familiar with the matter said.

CEO Paul Stone has had the top job at Hertz since May 2020, taking the position days before the company filed for bankruptcy protection. Hertz exited chapter 11 earlier this year and is now controlled by an investor group led by Certares Management LLC and Knighthead Capital Management LLC.


Apple Judge's Warning Suggests App Store Fight Is Far From Over

Apple Inc. scored a partial victory Friday in a landmark antitrust case, but its fight with opponents of the App Store is far from over.

While U.S. District Judge Yvonne Gonzalez Rogers left in place many of Apple's restrictions for third-party software, she raised the specter of the tech company nearing a point where it could be deemed a monopoly in the mobile videogame market.


U.S. Stock Market Faces Risk of Bumpy Autumn, Wall Street Analysts Warn

(MORE TO FOLLOW) Dow Jones Newswires

09-13-21 0608ET

Latest news "Markets"
05:32pS&P/TSX Composite Index Ends 0.48% Higher at 21086.99 -- Data Talk
05:32pBOVESPA Index Ends 3.28% Lower at 110672.76 -- Data Talk
05:32pIPC Indice de Precios Y Cotizaciones Ends 0.54% Lower at 52402.73 -- Data Talk
05:32pS&P MERVAL Index Ends 1.75% Higher at 84307.98 -- Data Talk
04:52pTSX climbs to record high as investors eye strong earnings
04:41pCANADIAN NATIONAL RAILWAY : TSX climbs to record high as investors eye strong earnings
12:34pSTOXX Europe 50 Index Ends 0.14% Higher at 3612.21 -- Data Talk
12:34pCAC 40 Index Ends 0.05% Lower at 6669.85 -- Data Talk
12:34pDAX Ends 0.27% Higher at 15515.83 -- Data Talk
12:33pFTSE 100 Index Ends 0.19% Higher at 7217.53 -- Data Talk
Latest news "Markets"