Current Futures: Dow +37.00, S&P +4.10, NASDAQ +8.00
Asian markets advanced, after it was announced that CIT might be able to avoid bankruptcy. S&P futures also moved higher, overnight, extending the long streak of positive days.
Asian markets and the S&P futures were lifted tonight, after it was announced that CIT Group would be able to find as much $3 billion in emergency funding to continue its day-to-day operations. This rumor surfaced after the U.S. Government denied a second bailout package for the bank a few days back, even though CIT’s bankruptcy would have strong effects in the economy, TheLFB-Forex.com Trade Team said. The bank will be able to raise the necessary cash from its bondholders, in an attempt to restructure its debt. Sources have said that the bank faces $1 billion of rolling debt over the next month, while over the next year the company has almost $10 billion of debt maturing, excluding the $3 billion that was recently announced. This shows that even though the company will be able to find a solution for the short-term, the bank’s problem will persist over the coming quarters.
S&P futures are currently moving higher for the sixth day in a row, after a number of companies reported better than expected results in the previous week. This has helped the future market gain 64 points, or an early 7% over this 6-day period, recovering most of the declines seen during the month of June. During the Asian session, the financials posted some modest gains, but commodity and technology shares lifted the whole market higher. Overnight, the Japanese Nikkei was closed for business. The Australian S&P/Asx rose 52.90 points (1.32%) to 4,053.70
Crude oil for August delivery was recently trading at $64.60 per barrel, up by $0.50. To the upside, crude oil will have to test the $66.60 resistance area.
Gold for August delivery was recently trading higher by $4.20 to $940.80. Gold is struggling to break above the 942.00.area for three days
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