#PreMarket Primer: Friday, March 28: China Planning To Increase Spending And Kick Start Economy
The Chinese government has hinted more spending in order to aid the nation’s stalled economy. Chinese Premier Li Keqiang told the state media that the government was planning to use targeted measures in order to help kick start the Chinese economy. The news boosted share markets in Asia and was positive for commodities as the nation’s economic slowdown has been a massive concern for global demand growth.
In other news around the markets:
- On Friday, Moscow spoke out against the UN’s latest resolution which declared Crimea’s succession as invalid. Russian officials have said the declaration was counterproductive and that Western leaders used political blackmail and economic threats in order to pressure other nations into agreement.
- The search for the missing Malaysian Airlines jet continued on Friday as Australian officials shifted the search area 1,100 km north of the location that teams have been scouring for over a week. New radar information from Malaysia has shown that the plane was moving faster than originally believed, so officials think the jet ran out of fuel earlier than expected.
- US officials claim that increasing numbers of Russian troops are being stationed at Ukraine’s borders and setting up supply lines which could be indicative of a prolonged deployment. The rapid buildup stoked worries that Russia is planning further movements.
- The Affordable Care Act has surpassed a key threshold on Thursday after more than six million people used the state and federal insurance exchanges in order to sign up for private health care. The figure surpassed the Congressional Budget Office’s estimate for enrollment in 2014.
Asian markets were mostly higher to finish the week; the Japanese NIKKEI was up 0.50 percent, the South Korean KOSPI was up 0.15 percent, and the Hang Seng Index gained 1.06 percent.
Europe’s markets were up across the board; the UK’s FTSE gained 0.51 percent, the eurozone’s STOXX 600 was up 0.64 percent, the German DAX gained 0.91 percent and France’s CAC 40 was up 0.46 percent.
Energy futures improved; Brent futures gained 0.22 percent and WTI futures were up 0.35 percent. Gold and silver gained 0.10 percent and 0.42 percent respectively and industrial metals were mostly higher, with copper posting the largest gains, up 2.21 percent.
The euro lost momentum on Friday and was down 0.15 percent against the dollar and 0.17 percent against the British pound. The pound to dollar ratio was flat, but the dollar gained 0.12 percent against the Japanese yen.
Notable earnings released on Thursday included:
- Accenture plc.(NYSE: ACN) reported second quarter EPS of $1.03 on revenue of $7.13 billion, compared to last year’s EPS of $1.00 on revenue of $7.06 billion.
- Gamestop (NYSE: GME) reported fourth quarter EPS of $1.89 on revenue of $3.68 billion, compared to last year’s EPS of $2.16 on revenue of $3.56 billion.
- Lululemon athletica (NASDAQ: LULU) reported fourth quarter EPS of $0.75 on revenue of $521.00 million, compared to last year’s EPS of $0.75 on revenue of $485.49 million.
Stocks moving in the Premarket included:
- Trans Ocean Ltd (NYSE: RIG) rose 0.87 percent in premarket trade after rising 0.60 percent over the past five days.
- Bank of America(NYSE: BAC) was up 0.71 percent in premarket trade after falling 5.08 percent over the past week.
- Citigroup(NYSE: C) increased 0.30 percent in premarket trade after losing 5.40 percent on Thursday.
Notable earnings releases expected on Friday include:
- Blackberry (NASDAQ: BBRY) is expected to report a fourth quarter loss of $0.56 on revenue of $1.13 billion, compared to last year’s EPS of $0.22 on revenue of $2.68 billion.
- The Finish Line (NASDAQ: FINL) is expected to report fourth quarter EPS of $0.85 on revenue of $529.35 million, compared to last year’s EPS of $0.76 on revenue of $442.68 million.
Friday’s economic calendar will include US consumer sentiment, German CPI, eurozone industrial sentiment, eurozone consumer confidence, eurozone business climate.
For a recap of Thursday’s market action, click here.
Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin here.
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