s&p futures news

s&p futures news

November 17th, 2014

Standard & Poor’s 500 Index futures (SPX) dropped, signaling the gauge will decline from a record high, while Treasuries rose and oil fell. The yen strengthened against most of its peers after Japan unexpectedly slid into recession.

S&P 500 futures retreated 0.3 percent at 8:35 a.m. in New York. Halliburton Co. declined after agreeing to buy Baker Hughes Inc. The Stoxx Europe 600 Index slipped 0.1 percent. Japan’s currency gained against all but four of its 16 major counterparts and the Topix dropped the most in six weeks. The yield on 10-year Treasuries slid three basis points to 2.29 percent. Chinese shares in Hong Kong slid as a trading link between the city and Shanghai began. Brent crude fell 1.2 percent to $78.43 a barrel and U.S. natural gas rose.

Manufacturing in the New York region expanded less than forecast, according to a report by the Federal Reserve. Data earlier showed Japan’s economy, the world’s third largest, contracted 1.6 percent last quarter from a year before, missing a 2.2 percent gain predicted in a Bloomberg survey. About $3.5 trillion has been added to the value of global equities since Oct. 16 amid signs the U.S. was weathering a slowdown in Europe and Asia, while the Bank of Japan boosted stimulus measures.

“After a significant rally on the Bank of Japan’s decision to introduce more stimulus, the market is reacting to shock that there was actually a recession there,” said Francois Savary, chief investment officer of Reyl & Cie. in Geneva. “It’s time to take back some of those gains but not to overreact. The weakness of Japan really increases the fact that we rely too much on the U.S. to support global growth.”

Three shares declined for every two that advanced in the Stoxx 600, with trading volumes 35 percent lower than the 30-day average, according to data compiled by Bloomberg.

S&P 500 Futures: Sonova Misses

Sonova Holding AG fell 1.8 percent after the Swiss maker of hearing aids posted first-half profit that missed analysts’ estimates.

Merck KGaA jumped 3 percent after saying it will receive $850 million and could get up to $2 billion in regulatory and commercial milestone payments to develop and commercialize a tumor treatment with Pfizer Inc.

Baker Hughes jumped 15 percent in early New York trading. Baker Hughes shareholders will receive 1.12 Halliburton shares plus $19 in cash for each share they own, the companies said today in a joint statement. Halliburton slid 4.7 percent.

Pfizer fell 1.6 percent in European trading. The drugmaker cut its earnings forecast to reflect the $850 million upfront payment.

Futures on the S&P 500 expiring in December declined after a fourth weekly increase. The index rallied 9.5 percent from its low last month.

S&P 500 Futures: China Link

The MSCI Emerging Markets Index lost 0.4 percent. The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong sank 1.9 percent, the most since Sept. 10. The Shanghai Composite Index slipped 0.2 percent.

International investors purchased 13 billion yuan ($2.1 billion) of Shanghai shares, triggering a halt in buy orders for the rest of the day. Mainland investors used about 1.7 billion yuan of their 10.5 billion yuan quota in Hong Kong.

China’s bad loans jumped by the most since 2005 in the third quarter, China Banking Regulatory Commission said in a statement on Nov. 15.

Russia’s ruble slid for a third day, declining 0.4 percent 47.36 per dollar. The Micex gained 0.6 percent, up for a second day as a weaker ruble boost the profit outlook for exporters.

S&P 500 Futures: Putin Warning

President Vladimir Putin warned he won’t allow rebels in eastern Ukraine to be defeated by government forces as European Union weigh blacklisting more eastern Ukrainian separatists while holding off on further economic sanctions on the Kremlin.

The yield on Ukraine’s 2017 dollar-denominated notes jumped 66 basis points to an all-time high 18.27 percent, extending this month’s increase to 4.88 percentage points. The hryvnia gained 0.7 percent to 15.42 per dollar.

Persian Gulf stocks fell with oil. Saudi Arabia’s Tadawul All Share Index dropped 2.9 percent, heading for the lowest close since March. Benchmark gauges in Dubai and Abu Dhabi lost more than 1 percent.

The yen gained 0.4 percent to 145.14 per euro and 0.1 percent versus the dollar. The Topix index of stocks slid 2.5 percent.

Japan’s second straight drop in gross domestic product, matching the textbook definition of a recession, followed a revised 7.3 percent contraction in the second quarter that coincided with an increase in the national sales tax from 5 percent to 8 percent.

S&P 500 Futures: VAT Outlook

“The prime minister in all likelihood is going to say, look, we’re going to reduce the likelihood of Japan falling into recession again next year by taking away the VAT hike,” Jesper Koll, the head of Japan equity research in Tokyo at JPMorgan Chase & Co., said in a Bloomberg TV interview.

The 10-year Treasury yield earlier touched 2.28 percent, the least since Nov. 10. The rate on similar-maturity U.K. bonds fell two basis points to 2.10 percent, while German 10-year rates were little changed at 0.79 percent.

U.S. natural gas futures rose 2.6 percent to $4.126 per million British thermal units, the biggest gain in a week, amid colder weather. The fuel rose 2 percent in the U.K. after supply disruptions from the North Sea.

Brent crude futures extended the contract’s longest weekly decline since it began trading in 1988. West Texas Intermediate dropped 1 percent to $75.05 in New York.

Members of the Organization of Petroleum Exporting Countries are stepping up diplomacy before their Nov. 27 meeting to discuss production levels. Iran’s oil minister is preparing to visit the United Arab Emirates this week, according to Shana, the Tehran-based ministry’s news service.

- Nick Gentle in Hong Kong and Stephen Kirkland in London at Bloomberg.