#PreMarket Primer for November 18: Progress With Iran Tests US' Relationship With Israel
Recent negotiations between the US and Iran could end a decade long standoff over Iran's nuclear program and seem to be thawing the historically icy relationship between the two nations. However, the talks have put the US' relationship with Israel is to the test as Israeli leaders are becoming increasingly dissatisfied with Washington.
Israel sees a deal with Iran as a terrible mistake, and has criticized the US as such. Although both the US and Israel insist that their relationship is strong enough to withstand such a large disagreement, the State Department revealed on Sunday that Secretary of State John Kerry may make another trip to Jerusalem this month in order smooth over the tension.
In other news around the markets:
The Chinese government announced on Friday that the nation's capital market system was in for a massive overhaul over the next ten years. Among the changes to be made is a more Westernized IPO system which would shift the nation's reliance on Chinese regulators for approval of an IPO and allow companies more options to raise funds.
Another scandal hit British Banks over the weekend as former Chairman of Co-operative Bank Paul Flowers was seen discussing a drug purchase and counting out the money for the transaction. Flowers, who stepped down as chairman back in June, testified about his involvement in Co-operative Bank's near failure only a few days ago.
A panel tasked with reworking Japan's Government Pension Investment Fund could release its report this week as early as November 20th. The panel is expected to report that the fund should be taken out of the control of the nation's health ministry and remade as an entirely new entity. The Japanese government is hoping that the fund's overhaul will add trillions of yen to the nation's share markets and buoy investor sentiment.
ECB Executive Board Member Peter Praet reiterated his confidence that the eurozone's central bank still had plenty of options to help assist the eurozone's recovery even if the main interest rate is cut to zero. Praet underscored that the eurozone was not yet facing deflation, but said the bank was cautious about low inflation and its effects on business activity in the bloc.
Asian markets were mostly higher to start the week, the Shanghai composite gained 2.87 percent and the Shenzhen composite was up 2.28 percent. The Hang Seng index was up 2.62 percent and Indonesia's JSX composite rose 1.18 percent.
Europe's market were quiet on Monday morning, the UK's FTSE was up 0.01 percent and the eurozone's STOXX 600 rose 0.06 percent. Italy's MIB gained 0.68 percent and the Spanish IBEX was up 0.16 percent.
Energy futures were lower on Monday, Brent futures lost 0.39 percent and WTI futures were down 0.43 percent. Precious metals were mostly flat with both gold and silver unchanged. Industrial metals were modestly higher with zinc up 0.69 percent and tin up 0.11 percent.
Currency markets were quiet on Monday, the euro rose slightly to $1.35 and the pound gained 0.05 percent against the dollar. The dollar lost 0.24 percent against the yen and 0.50 percent against the Australian dollar.
No notable earnings released on Friday
Stocks moving in the Premarket included:
- JP Morgan Chase and Co (NYSE: JPM) gained 1.51 percent in premarket trade after gaining 1.69 percent last week.
Exxon Mobil Corp (NYSE: XOM) gained 1.29 percent in premarket trade after rising 2.20 percent on Friday.
General Motors Co (NYSE: GM) rose 1.24 percent in premarket trade after climbing 5.76 percent over the past five days.
Mosaic Co (NYSE: MO) rose 0.92 percent in premarket trade after gaining 1.85 percent on Friday.
Notable earnings expected on Monday include:
- Salesforce.com Inc (NYSE: CRM) is expected to report third quarter EPS of $0.09 on revenue of $1.05 billion, compared to last year’s EPS of $0.08 on revenue of $788.40 million.
Tyson Foods Inc. (NYSE: TSN) is expected to report fourth quarter EPS of $0.69 on revenue of $8.89 billion, compared to last year’s EPS of $0.55 on revenue of $8.37 billion.
UGI Corporation (NYSE: UGI) is expected to report a fourth quarter loss of $0.06 per share on revenue of $1.21 billion, compared to last year’s loss of $0.09 per share on revenue of $1.13 billion.
The focus will once again be on the Fed on Monday as the US central bank's Dudley and Rosengren are set to speak. Other notable releases include the eurozone's trade balance and current account, and Canadian foreign securities purchases.
For a recap of Friday’s market action click here.
Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin here.
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