The U.S. Futures Are Higher In Early Trading
The U.S. futures are indicating a higher open in early Wednesday trading. The move is driven by better than expected earnings and a shot of good news out of China. Unconfirmed reports from within China say researchers have found a viable treatment for the Novel Coronavirus. If true, it could mean a quick end to the rapidly spreading outbreak. There are now over 25,000 cases globally with nearly 500 dead. The World Health Organization issued a statement to counter the news stating there is no known treatment for this disease.
The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are indicated to open about 0.70% higher. In stock news, shares of Disney are fractionally higher in the premarket action. The global entertainment giant beat consensus estimates for 4th quarter earnings but warned the coronavirus could impact revenue by $175 million. Shares of Ford are moving lower after the iconic automaker missed expectations and gave weak guidance for the coming year.
On the economic front, the ADP employment report far surpassed expectations. The headline figure of 291,000 was nearly double the consensus and showed broad gains in labor. Later in the session traders will be looking for the final read on January PMI and services sector ISM.
European Markets Move Higher
The EU indices are broadly higher at midday on Wednesday. The DAX is in the lead with a gain of 1.45% following better than expected PMI data. The EU Composite PMI came in at 51.3 and a five-month high while in Germany it came closer to 55. The CAC is up about 1.10% while the FTSE is up 0.75%. Autos are among the biggest gainers with average advances greater than 2.0%.
In stock news, shares of lender BNP are moving higher after the company reported results. Quarterly revenues were better than expected but guidance was a bit weak but not as weak as some had thought. Danske Bank reported flat revenue and EPS but warned this year would not be so good. Shares fell -0.90% on the news. Infineon is among the days biggest movers with a gain of 9.25% following it’s EPS beat and guidance upgrades.
Asian Markets In Rebound Mode
The Asian markets are broadly higher on Wednesday as improving sentiment drives market action. The Shanghai Composite is today’s leader with a gain of 1.25% while the Nikkie follows close behind. The Hang Seng, ASX and Kospi all posted gains in the range of 0.40%.
The biggest news in the region is the coronavirus. Business and travel continue to be impacted and new closings were announced today. Hyundai is only one major manufacturer to shutter its plant. The PBOC injected $242 billion of liquidity into the system over the last two days in an attempt to counter the impact of the virus.
This article was originally posted on FX Empire
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